ADB cuts inflation rate forecast for Central Asian countries

/By Azernews/

By Nigar Abbasova

The Asian Development Bank has decreased its inflation forecast from 5.9 to 5.7 percent for Central Asian countries in 2017. The bank refers Azerbaijan to this group.

The Bank expects that the inflation in the developing Asian countries will increase approximately by 2.8 percent in 2016 while the increase in 2017 will amount to 3 percent.

The bank has also revised its forecast on the growth rates of the Central Asian countries economies. The bank forecast that the average GDP growth in the region will amount to 1.7 and 2.7 percent in 2016 and 2017 respectively as compared to the previous forecast of 2.1 and 2.8 percent.

Law prices for raw materials, mainly oil and gas, as well as continuing recession in Russia are considered to be the main reasons for the change in the forecast.

 The bank forecasts a solid growth in the economies of Asian and Pacific countries in 2016-2017. Analysts say that the stable productivity in South, East and South-East Asia allows setting of the effect of economic slowdown in the USA and market shocks triggered by Brexit.

ADB’s chief economist Shang-Jin Wei said that the short-term influence of Brexit on the real economy of developing countries will be insignificant.

GDP growth is expected to be at 5.6 percent in 2016 as against the previous forecast of 5.7.  Forecast on the economic growth in the region in 2017 remained the same at the level of 5.7 percent.

The ADB, based in Manila, dedicates itself 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 of which are from the Asia-Pacific region.