China's economy is slowing, but Asia will remain a growth hot spot as India and Southeast Asian economies roar ahead, said the Asian Development Bank (ADB).
Emerging Asian economies will grow 6.3 percent in both 2015 and 2016, unchanged from last year, ADB wrote in its annual Asian Development Outlook for 2015, published on Tuesday.
"Developing Asia is making a strong contribution to global economic growth," said Shang-Jin Wei, chief economist at the ADB.
"Falling commodity prices are creating space for policy makers across the region to cut costly fuel subsidies or initiate other structural reforms. This is a key opportunity to build frameworks that will support more inclusive and sustainable growth in the longer term," he said.
China vs India
China's gross domestic product (GDP) growth will continue to diminish to 7.2 percent in 2015 and 7 percent in 2016, as the government proceeds with its structural reform agenda and fixed asset investment slows, ADB said.
The world's second largest economy expanded 7.4 percent in 2014, its slowest pace in 24 years, undershooting the government's target for the first time since 1998.
India's economy, in contrast, is poised to take off, as the initial phase of government efforts to remove structural bottlenecks lifts investor confidence and external demand picks up.
The economy is forecast to grow 7.8 percent in fiscal year 2015-2016, a notable rise from 7.4 percent growth in the previous fiscal year.