Typhoon Yolanda, Thai protests to curb Southeast Asia’s growth – ADB

The Asian Development Bank (ADB) on Wednesday trimmed its growth forecasts for Southeast Asia this year and the next in the wake of Typhoon Yolanda in the Philippines and an on-going political turmoil in Thailand. 

 

"Southeast Asia’s growth forecast is tempered by 0.1 percentage points in both 2013 and 2014," the ADB said in its Asian Development Outlook Supplement. 

 

"Typhoon damage will moderate rapid growth in the Philippines before major reconstruction gets underway, and the unfolding political turmoil in Thailand is expected to undermine its growth over the forecast horizon," the report noted. 

 

Southeast Asia growth is now seen at 4.8 percent in 2013 and 5.2 percent in 2014. The ADB did not give a specific forecast for each of Southeast Asian nations. 

 

Earlier, Socioeconomic Planning Secretary Arsenio Balisacan said damage caused by Typhoon Yolanda will curb growth, but maintained that the government will hit its 6 to 7 percent target this year.   

 

The Philippine economy grew by 7.4 percent in the first three quarters, the fastest in Southeast Asia. 

 

Typhoon Yolanda pummeled central Philippines on Nov. 8, laying waste to everything on its path and killing nearly 6,000 persons. 

 

Thailand's economy, meanwhile, may see a dent from protests' adverse impact on consumption and tourism. 

 

Anti-government protesters have forced Thai Prime Minister Yingluck Shinawatra to call a snap election. 

 

But "red shirts" supporters of Shinatwatra on Wednesday said they could take to the streets, setting the scene for confrontation, Reuters reported. Yingluck's older brother Thaksin was toppled by the military in 2006.  

 

The ADB, however, raised its growth projection for China this year to 7.7 percent from 7.6 percent and next year to 7.5 percent from 7.4 percent. 

 

China's stronger growth will be aided by government reforms and improving prospects of its major trading partners, the ADB said.  

 

Improved forecasts in China, the region’s largest economy, prompted the ADB to keep developing Asia's growth projection at 6.0 percent this year from before improving to 6.2 percent in 2014. – Siegfrid Alegado/VS, GMA News