China ‘will achieve’ growth target

For China, the lender expects it to grow 6.8 percent this year and 6.7 percent in 2016.

It follows the Asian Development Bank downgrading China’s expected rate of growth for 2015 from 7.2% to 6.8%.

The move comes after the economy registered slower annualized growth figures during the first two quarters of the year. The Aquino administration has a seven- to eight-percent growth target for this year.

The Philippines’ rosy outlook, however, is the opposite of the overall growth prospects for the rest of the region. “We assess that economic expansion will continue and will accelerate on the second half of the year”, ADB Country director Richard Bolt said in a briefing.

Southeast Asia’s growth will be at 4.4 percent this year, same as last year and down from its July forecast of 4.6 percent, before accelerating to 4.9 percent next year, the ADB said.

Besides, deceleration was broad-based, with private consumption, manufacturing and services witnessing slower growth, it noted. Local spending could also get a boost from the upcoming 2016 elections as disbursements are frontloaded.

Expected improvements in exports and infrastructure investment are seen lifting growth to 4.9 per cent in 2016.

The assistance program incorporates lessons learned from ADB’s responses to natural disasters in other countries, including the recent Nepal quake . Planned infrastructure investment has fallen behind schedule in Indonesia and the Philippines, and Thailand’s recovery to date has been sluggish. Vietnam, by contrast, is growing faster than anticipated earlier this year, powered by foreign direct investment and buoyant private consumption.

The bigger developing Asia, meanwhile, will also slow to 5.8 percent and six percent in 2015 and 2016, respectively. That’s down from 6.3 percent growth that it forecast in March for both years.

“There are considerable headwinds to growth in Asia although it remains the largest source of global growth”.

Continuing steps to build liquid, well-developed domestic financial markets can help reduce the corporate sector’s reliance on foreign currency borrowings.ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.Established in 1966, it is owned by 67 members-48 from the region.

A severe El Niño could push prices of food, water and electricity higher, as well as hurt rural incomes. “The government is aware of this and has taken specific measures to address them”, Bolt said.