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Monday, July 18, 2016, 12:54

ADB says China economy 'on track'

By Xinhua

ADB says China economy 'on track'
MANILA - A new Asia Development Bank (ADB) report said Monday China is "on track to meet earlier growth projections" of 6.5 percent for 2016 and 6.3 percent for 2017 despite weak global prospects and Brexit.

In East Asia, growth forecasts are unchanged at 5.7 percent in 2016 and 5.6 percent in 2017, with China, the world's second largest economy, on track to meet projected growth of 6.5 percent in 2016 and 6.3 percent in 2017, the Manila-based bank said in a statement.

To support its targets, it said the Chinese government is expected to continue using fiscal and monetary stimulus measures.

The statement also said that growth in Asia and the Pacific's developing economies for 2016 and 2017 "will remain solid as firm 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 report, released last March, ADB now forecasts 2016 growth for the developing economies at 5.6 percent, below its previous projection of 5.7 percent.

For 2017, growth is seen unchanged at 5.7 percent.

"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, he added "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."

Growth in 2016 and 2017, the report notes, is led by South Asia,  and India in particular, which continues to expand strongly, while China is on track to meet earlier growth projections.

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