ISLAMABAD (Web Desk) – The Asian Development Bank (ADB) has forecast the further boost in Pakistan’s economic growth during 2016 and 2017 due to high investment in infrastructure, improved security environment and energy provision.
“In Pakistan, further improvements in energy supply, higher infrastructure investments, and an improved security environment will help push up growth in 2016 and 2017,” said an ADP report released on Monday.
Development in Asia and the Pacific’s developing economies in 2016 and 2017 will remain solid as solid performances from South Asia, East Asia and Southeast Asia help offset softness from the US economy, and near-term market shocks from the Brexit vote.
In a supplement to its Asian Development Outlook 2016 (ADO 2016) report, released last March, ADB now forecasts 2016 growth for the developing economies at 5.6%, below its previous projection of 5.7%. For 2017, growth is seen unchanged at 5.7%.
“Although the Brexit vote has affected developing Asia’s currency and stock markets, its impact on the real economy in the short term is expected to be small,” said Shang Jin Wei ADB’s Chief Economist.
“However, in light of the tepid growth prospects in the major industrial economies, policy makers should remain vigilant and be prepared to respond to external shocks to ensure growth in the region remains robust.”
Development in 2016 and 2017, the report notes, is led by South Asia, and India in particular, which proceeds to expand strongly, while the People’s Republic of China (PRC) is on course to see earlier growth projections.
In East Asia, despite muted activity in Hong Kong, China and the Republic of Korea, growth forecasts are unchanged at 5.7% in 2016 and 5.6% in 2017, with the world’s second largest economy, the PRC, on track to meet planned growth of 6.5% in 2016 and 6.3% in 2017.