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Asia growth outlook brightens on strong exports - ADB

* China 2017, 2018 growth revised upwards

* Asia seen to grow faster than previously thought

* Inflation across the region to stay under control

MANILA, July 20 (Reuters) - The Asian Development Bank raised its 2017 and 2018 growth forecasts for the region, reflecting rising exports as manufacturers of smartphones to cars to other consumer goods benefited from improving global demand. Developing Asia - made up of 45 countries in the Asia-Pacific region - is expected to grow 5.9 percent and 5.8 percent this year and next, the Manila-based ADB said in the update of its Asian Development Outlook on Thursday. They are a step up from April forecasts of 5.7 percent for both years. An upturn in global demand since late last year has given trade-dependent Asian economies much needed momentum, with the United States and Europe also showing improving growth. The update of the Development Outlook raised China's 2017 and 2018 growth forecasts to 6.7 percent and 6.4 percent, respectively, from 6.5 percent and 6.2 percent, driven by strong consumption and improving shipments. China's economy beat expectations with 6.9 percent growth in the second quarter, in part driven by firmer exports and production, which could heighten trade tensions as the United States and Beijing begin economic talks on Wednesday.

"Despite lingering uncertainties surrounding the strength of the global recovery, we feel that the region's economies are well-placed to face potential shocks to the outlook," Yasuyuki Sawada, ADB's chief economist, said in a statement. Inflation across the region is expected to remain under control, helped by well-behaved food and fuel prices, the ADB said. It cut this year's inflation projection to 2.6 percent from 3.0 percent, and next year's forecast to 3.0 percent from 3.2 percent.

GDP GROWTH, pct

Subregion/Eco Actual FORECAST

nomy

2016 --- 2017 --- 2018 --- 16-Dec April July April July Central Asia 2.1 2.6 3.1 3.2 3.5 3.8 East Asia 6.0 5.6 5.8 6.0 5.6 5.7 China 6.7 6.4 6.5 6.7 6.2 6.4 South Asia 6.7 7.3 7.0 7.0 7.2 7.2 India 7.1 7.8 7.4 7.4 7.6 7.6 Southeast 4.7 4.6 4.8 4.8 5.0 5.0

Asia

Indonesia 5.0 5.1 5.1 5.1 5.3 5.3 Malaysia 4.2 4.4 4.4 4.7 4.6 4.6 Myanmar 6.4 na 7.7 na 8.0 na Philippines 6.9 6.4 6.4 6.5 6.6 6.7 Singapore 2.0 2.0 2.2 2.4 2.3 2.5 Thailand 3.2 3.5 3.5 3.5 3.6 3.6 Vietnam 6.2 6.3 6.5 6.5 6.7 6.7 The Pacific 2.6 3.3 2.9 2.9 3.3 3.3 Developing 5.8 5.7 5.7 5.9 5.7 5.8

Asia

INFLATION pct

Subregion/Eco Actual --- --- FORECAST --- ---

nomy

2016 --- 2017 --- 2018 2018 16-Dec April July April July Central Asia 11.1 6.3 7.8 8.1 7.3 7.4 East Asia 1.9 2.1 2.3 1.9 2.6 2.4 China 2.0 2.2 2.4 2.0 2.8 2.6 South Asia 4.6 5.7 5.2 4.2 5.4 4.7 India 4.7 5.8 5.2 4.0 5.4 4.6 Southeast 2.1 3.0 3.3 3.3 3.5 3.4

Asia

Indonesia 3.5 4.0 4.3 4.3 4.5 4.5 Malaysia 2.1 2.5 3.3 4.0 2.7 2.7 Myanmar 6.5 na 7.0 na 7.5 na Philippines 1.8 2.8 3.5 3.5 3.7 3.7 Singapore -0.5 0.8 1.0 1.1 1.5 1.5 Thailand 0.2 2.0 1.8 1.2 2.0 1.6 Vietnam 2.7 5.0 4.0 4.0 5.0 5.0 The Pacific 4.6 5.4 5.2 5.4 5.4 5.4 Developing 2.5 2.9 3.0 2.6 3.2 3.0

Asia

(Reporting by Karen Lema; Editing by Shri Navaratnam)