Economic outlook and macroeconomic assessment for Emerging Asia

The growth prospects of the Emerging Asian economies are expected to remain robust, though growth rates and trends will vary across the region. China’s growth will continue to slow but will remain strong, while India’s growth will remain high. The Philippines and Viet Nam will lead growth among the large ASEAN-5 economies. The lower-income CLM countries (Cambodia, Lao PDR and Myanmar) will continue their catch-up with the highest growth rates in ASEAN. Private consumption should continue to make a large contribution to growth. Despite largely favourable growth outlooks, policy makers in the region will need to pay careful attention to potentially important international and domestic downside risks associated with slowing export growth, persistent low interest rates in the advanced economies and sluggish productivity growth.