Growth in Southeast Asia to Accelerate Further

Economic growth in Southeast Asia is trending up with nearly all countries showing bright prospects. The Asian Development Bank (ADB) forecasts gross domestic product (GDP) to grow at an average of 4.8% in 2017 and 5% in 2018, from 4.7% in 2016.

In its Asian Development Outlook 2017 report, ADB said an expected recovery in global food and fuel prices will help boost commodity production in Southeast Asia. In the Mekong region, higher infrastructure investment is forecast to particularly boost growth in the Lao People’s Democratic Republic and Thailand. Record foreign direct investment will be a key factor supporting growth in Viet Nam.

Strengthening growth and rising international oil prices will mean higher inflation and a narrower current account surplus for Southeast Asia. Average inflation is forecast to rise from 2.1% in 2016 to 3.3% this year, edging up further to 3.5% next year.