Growth holds up in Asia's developing countries. Gross domestic product in the region is expected to grow at 5.7% in 2016 and 2017, only slightly down from 5.9% in 2015.
Recovery in major industrial economies delayed. The United States, the Euro area and Japan as a group will grow at 1.4% in 2016 before picking up a bit to 1.8% in 2017.
Economic growth in People's Republic of China churns along. As structural reforms continue, gross domestic product is expected to grow at 6.6% in 2016 and 6.4% in 2017.
Steady progress in reform helps India realize growth targets. Economic growth is forecast at 7.4% in 2016 and 7.8% in 2017.
Southeast Asia meets growth expectations. Growth in the five large economies in the Association of Southeast Asian Nations is forecast to hit 4.8% in 2016 and 5.0% in 2017.
Low oil prices impede Central Asia. Economic expansion in Central Asia will continue to be slow this year and next due to low energy and commodity prices, as well as reduced remittances from Russia. Growth is expected at 1.5% in 2016 and 2.6% in 2017.
Storms and budget woes hit the Pacific. Cyclone damage in Fiji and fiscal difficulties in Papua New Guinea undercut forecasts for the larger Pacific economies this year. Subregional growth is forecast at 2.7% in 2016 and 3.5% in 2017.
Inflation will revive marginally in Asia's developing countries with rising oil prices. Average inflation will tick upward to 2.6% in 2016 and 2.9% in 2017.
Risks to the region's outlook tilted toward the downside. The slow recovery of major global economies, potential US interest rate hikes, disasters and private debt are just some of the clouds on the horizon.
Burgeoning private debt may end up weighing on national budgets and public debt. From 2008 to the first quarter of 2016, the average ratio of household debt to gross domestic product in Asia increased by 15 percentage points, while the ratio for nonfinancial corporations rose by 24 points.
South Asia sustains its rapid growth. The dynamic subregion is expected to grow 6.9% in 2016 and 7.3% in 2017.
Southeast Asia is on a roll. The subregion's growth is forecast to edge up to 4.5% this year and increase further to 4.6% in 2017.
Asia poised to be climate change leader. By transitioning to low-carbon growth, developing countries in the region could reap outsized rewards as an essential player in the global effort to contain climate change.