TOKYO - The economies of Indonesia and the Philippines are projected to grow further this year thanks to the strong US economy, falling crude oil prices and other factors, according to an economic forecast for China and four major Southeast Asian economies by the Japan Center for Economic Research.
China, meanwhile, will likely maintain an annual growth rate of 7 per cent in 2015 but its economy is expected to continue slowing down, the JCER says in its report. This suggests that the picture is mixed for growth momentum among Asian economies this year.
In its first short-term economic forecast for Asia, the JCER predicts the real gross domestic product growth rate of five Asian economies -- China, Indonesia, Thailand, Malaysia and the Philippines -- in 2015 and beyond.
The plunge in crude oil prices has been a tailwind for Asian economies. The report shows that lower oil prices will likely help boost these Asian countries, except for Malaysia, a net oil exporter. In addition, the robust US economic expansion fuels the growth of these Asian economies as the US is one of their biggest export destinations.
Indonesia's economy is forecast to grow 5.7 per cent annually this year, the first rise in economic growth rate in four years, according to the JCER. This is partly due to the end of the gasoline subsidy earlier this month by Indonesian President Joko Widodo, who took office in October last year.
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