Growth prospects for developing Asia are looking up, bolstered by a revival in world trade and strong momentum in the People’s Republic of China. The region is forecast to expand by 5.9% in 2017 and 5.8% in 2018, a slight upgrade from Asian Development Outlook 2017. Excluding the newly industrialized economies, the region is expected to grow by 6.4% this year and 6.3% in 2018.
Rebounds in international food and fuel prices are gentler than expected, helping to contain consumer price pressures. Inﬂation is likely to dip to 2.4% in 2017, or 0.1 percentage points oﬀ the 2016 rate, and pick up to 2.9% in 2018.
Risks to the outlook have become more balanced, as the advanced economies have so far avoided sharp, unexpected changes to their macroeconomic policies. Further, the fuel price rise is providing fiscal relief to oil exporters but is measured enough not to destabilize oil importers.
Looking ahead, developing Asia must mobilize $1.7 trillion annually to meet its infrastructure needs. Public–private partnership can help fill the financing gap by allocating risk to the party best able to manage it. The success of the approach depends on governments identifying projects suitable for it, engaging qualified private partners, and instituting the right process.