Asean to grow 5% in 2017: S&P Global

ASIA-PACIFIC economies are experiencing growth and will continue to do so heading into the last few months of the year with stable inflation and a low risk of macro surprises from China, according to S&P Global.

Overall economic growth for South-east Asia is forecast at 5 per cent in 2017 and 2018 as countries in the region continue to enjoy robust domestic activity, the firm said. Demand for electronics is also boosting countries with links to the global electronics supply chain.

In Singapore, real GDP (gross domestic product) growth is estimated at 2.6 per cent for 2017 and 2.4 per cent for 2018 with momentum from strong external demand in the first half expected to carry through for the rest of the year.

Across the Asia-Pacific, geopolitical risks remain but are not expected to affect economic growth.

China is projected to achieve its 2017 growth target of 6.5 per cent or higher. Quality of growth for the previous quarters has improved on the back of recent reforms of state-owned enterprises, and a boost in public investment spending.

S&P forecasts growth of 6.8 per cent in 2017 for China, and 6.5 per cent and 6.4 per cent for the following two years respectively.