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      Declined oil price benefits Asia: ADB

      2014-12-17 15:40 Xinhua Web Editor: Qin Dexing
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      Declining global oil prices provide a golden opportunity for Asia, which saw its economic growth slowed down in the second half of the year, Asian Development Bank (ADB) forecast in its report released on Wednesday.

      ADB Chief Economist Wei ShangJin said, "declining oil prices may mean an upside surprise in 2015 as most economies are oil importers," citing Indonesia and India as examples.

      On the other hand," Wei said, "oil exporters can seize the opportunity to develop their manufacturing sectors as low commodity prices tend to make their real exchange rates more competitive."

      In a supplement to its Asian Development Outlook 2014 Update, ADB forecasts gross domestic product (GDP) growth for the region of 6.1 percent this year, down from 6.2 percent expected in September, and 6.2 percent in 2015, down from 6.4 percent.

      Developing Asia, comprising the 45 ADB developing members, grew 6.1 percent in 2013. Growth projections for Central Asia, East Asia, and Southeast Asia are revised downward. There is no change for South Asia. The Pacific region's growth outlook is adjusted upward.

      With oil and commodity prices falling, most developing Asian economies have revised their inflation forecasts downward. The forecast for the region is lowered to 3.2 percent in 2014 and 3.5 percent in 2015, from the updates 3.4 percent and 3.7 percent.

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