ISLAMABAD: The Asian Development Bank (ADB) said on Thursday Pakistan’s economic growth rate for 2016-17 surpassed the bank’s estimate that the international lender had projected three months ago.

Published in April, the Asian Development Outlook (ADO) projected GDP growth to edge up to 5.2 per cent in 2016-17. In contrast, the economic survey released by the Ministry of Finance a month later stated that the growth rate reached the nine-year high of 5.28pc.

The supplement to ADO released by the ADB on Thursday said the country’s economic growth was supported by a revival in agriculture as well as by continued expansion in construction and steady growth in services. Strong private consumption remained the largest contributor to growth.

The report says the economic outlook for South Asia remains robust, with growth on track to meet ADO 2017 projections of 7pc for 2017 and 7.2pc for 2018. The ADB has projected growth rate of 5.5pc for Pakistan in 2017-18.

Economic growth prospects in developing Asia for 2017 have improved on the back of stronger-than-expected export demand in the first quarter of this year, according to the ADB report. It also upgraded the growth outlook in the region from 5.7pc to 5.9pc in 2017 and from 5.7pc to 5.8pc for 2018. The smaller uptick in the 2018 rate reflects a cautious view on the sustainability of this export push.

“Developing Asia is off to a good start this year with improved exports pushing growth prospects for the rest of 2017,” said Yasuyuki Sawada, ADB’s chief economist. “Despite lingering uncertainties surrounding the strength of the global recovery, we feel that the region’s economies are well placed to face potential shocks to the outlook.”

Combined growth for the major industrial economies is forecast to remain at 1.9pc in 2017 and 2018. Improved forecasts for the euro area and Japan due to robust domestic demand have offset the slight growth downturn in the US to 2.2pc.

Published in Dawn, July 21st, 2017