South Asia continues to be the fastest growing sub-region, led by India, whose economy is on track to meet the fiscal year 2018 projected growth of 7.3% and further accelerating to 7.6% in 2019, as measures taken to strengthen the banking system and tax reform boost investment, Asian Development Bank (ADB) said.
The growth continues despite new trade tensions in Asia and Pacific region.
Growth in Asia and Pacific region's developing economies for 2018 and 2019 will remain solid as it continues apace across the region, ADB's report said.
"Although rising tensions between US and its trading partners remain a concern, protectionist trade measures implemented so far in 2018 have not significantly dented buoyant trade flows to and from developing Asia," said ADB Chief Economist Yasuyuki Sawada.
Prudent macroeconomic and fiscal policy-making will help economies across the region prepare to respond to external shocks, ensuring that growth in the region remains robust.
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