ISLAMABAD: Developing Asia remains the fastest growing region globally despite slower-than-expected growth in major industrial countries as key economies in the region move ahead with structural reforms, said a new Asian Development Bank (ADB) report.

In an update of its flagship annual economic publication, Asian Development Outlook 2014 (ADO 2014), released Thursday, ADB kept its forecasts for growth of gross domestic product (GDP) for the region at 6.2% in 2014 and 6.4% in 2015.

The Developing Asia which comprises 45 ADB developing member countries grew 6.1% in 2013.

Following severe winter weather in the United States in the first quarter, a value-added tax hike in Japan in the second quarter, and continuing weakness in the Euro area, the world's major industrial economies recorded virtually no growth in the first half of the year.

They are now forecast to expand by 1.5% collectively in 2014, down 0.4 percentage points from the ADO 2014 forecast in April, before growth picks up to 2.1% in 2015.

According to the report South Asia is performing better than expected and the subregional growth forecast for 2014 is raised slightly to 5.4%, reflecting strengthening in Bangladesh and Pakistan on higher exports and remittances.

Growth in South Asia will pick up to 6.1% in 2015, 0.3 percentage points higher than previously forecast, it added.

In addition to the upward revision for India, growth forecasts for Pakistan and Bangladesh edged up in 2015, but efforts to improve the climate for private investment are keys in both cases.

Forecasts for sub regional inflation are trimmed by about a third of a percentage point to 6.1% in 2014 and 5.9% in 2015.

Source: APP