ISLAMABAD: The Asian Development Bank (ADB) has revised its forecast for the economic growth of Pakistan in its supplement to ‘Asian Development Outlook’ (ADO), which says ‘Pakistan’s economic growth has surprised on the high side in 2013-14.”

“Pakistan recorded growth in the previous fiscal year at 4.1 per cent above the ADO 2014 forecast of 3.4pc in April,” the ADB says in its ADO supplement released on Friday. The report further says that in South Asia, Pakistan now expects slower inflation across 2014 and 2015 as an appreciating Pakistani rupee helps contain local prices for imports.

With outcomes in economies other than Afghanistan basically in line with earlier expectations, the forecast for South Asia in 2014 nudged up 0.1 percentage points to 5.4pc. The improved outlook for India pushes up the 2015 forecast for South Asia from 5.8pc to 6.1pc.

The growth outlook for developing Asia is stable, with the region projected to grow steadily at 6.2pc in 2014 and 6.4pc in 2015, the report says.

Moody's puts positive outlook for Pakistan's economy

AFP adds: However, the Manila-based lender downgraded its economic outlook for Southeast Asia, citing political tensions in Thailand and Vietnam and soft external demand in Indonesia.

The ADB said it expected GDP to grow 4.7 per cent for the year, compared with its April projection of 5pc.

Indonesia’s growth for the first quarter of the year slowed to 5.2pc with low commodity prices and a temporary export ban on selected minerals slowing recovery in net exports, the bank said.

In Thailand, the economy contracted 0.6pc in the first three months of the year, as “political deadlock” hit domestic demand and the crucial tourism industry.

The bank also said adjustments were made to Vietnam’s economic forecast due to the economic effect of tensions with China. “Recent data suggest that Southeast Asia has softened...as growth prospects faltered,” the ADB supplement said, adding that it sees growth of 5.4pc in 2015.

Published in Dawn, July 19th , 2014