The Asian Development Bank (ADB) has revised its economic growth forecast for developing Asia, citing slower-than-anticipated expansion in major industrial economies and China.

In a supplement to its Asian Development Outlook 2016 Update, the ADB now projects regional growth of 5.7% for both 2016 and 2017. This represents a decrease from the previous forecasts of 5.9% for 2016 and 6.0% for 2017, released in September.

“Slower growth in the United States and the Euro area, as well as continued moderation in China, are weighing down the outlook for the region,” said ADB Deputy Chief Economist Juzhong Zhuang. “Despite the slight downward revision, developing Asia is still expected to grow at a healthy pace.”

The ADB highlighted the following factors contributing to the revised forecasts:

• United States: Weaker-than-expected investment and exports have led to a downward revision of the US growth forecast.
• Euro Area: Political uncertainty and structural issues continue to hamper growth in the Euro area.
• China: The Chinese economy is undergoing a structural transition, with growth expected to moderate further.

Despite these challenges, the ADB remains optimistic about the long-term growth prospects for developing Asia, citing strong domestic demand and ongoing structural reforms in many countries.