ADB expects modest slowdown in East Asia economic growth in 2007

East Asia's rapid economic growth in gross domestic product (GDP) is expected to slow down in 2007 to 4. 4 percent from 4.9 percent this year, said Asian Development Bank (ADB) Thursday.

But ADB said expected slowdown in growth in the United States and Europe's euro area will reduce only slight demand for East Asia's exports.

Excluding Japan, regional GDP in East Asia is projected to drop to 7 percent in 2007 from 7.7 percent this year, said the semiannual Asia Economic Monitor, an ADB report which covers the 10 members of ASEAN, China, Japan, South Korea, Hong Kong of China and Taiwan of China.

Japan's GDP growth is likely to be 2.8 percent in 2006 and is expected to slow modestly to 2.4 percent in 2007, said the report.

The report forecast China's economy to make a relatively smooth transition from projected 10.4 percent growth in 2006 to 9.5 percent in 2007.

Economic expansion in Hong Kong of China, South Korea, Singapore and Taiwan of China is expected to slide to 4.6 percent in 2007 from 5.3 percent this year, said the report.

Major risks faced by the East Asian regional growth include a sharper-than-expected slowdown in the U.S. economy, a disorderly adjustment of global payments imbalances, global financial market turbulence and a sudden oil supply shock, disruptions from non- economic events like avian flu pandemic or rising geopolitical tension, said the report.

Source: Xinhua