Economies defy SARS

Despite the impact of the deadly Sars virus, Asia’s 41 developing economies will still outperform the rest of the world with 5.3% growth this year, down from 5.7% in 2002, the Asian Development Bank said in its annual forecast today.

China, hardest hit by Severe Acute Respiratory Syndrome, will be the strongest performer with estimated growth of 7.3%, compared with 8% last year, the Manila-based bank said.

Overall, Sars is likely to depress Asia’s growth by 0.1 to 0.2 percentage points in 2003, but strong domestic demand, improving export performance and prudent fiscal and monetary policies are expected to carry the region’s momentum into 2004, with the ADB projecting higher gross domestic product growth of 5.9%.