Economic growth prospects in developing Asia for 2017 have improved on the back of stronger-than-expected export demand in the first quarter of this year, according to a new Asian Development Bank (ADB) report.

In a supplement to its Asian Development Outlook 2017 report, ADB upgraded its growth outlook in the region from 5.7% to 5.9% in 2017 and from 5.7% to 5.8% for 2018. The smaller uptick in the 2018 rate reflects a cautious view on the sustainability of this export push.

"Developing Asia is off to a good start this year with improved exports pushing growth prospects for the rest of 2017," said Yasuyuki Sawada, ADB's Chief Economist. "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."

Combined growth for the major industrial economies is forecast to remain at 1.9% in 2017 and 2018. Improved forecasts for the euro area and Japan due to robust domestic demand have offset the slight growth downturn in the US to 2.2% from the previously projected 2.4% as a result of disappointing first quarter results in 2017.

By sub-region, growth for East Asia is revised upward to 6.0% in 2017 and 5.7% in 2018 from the original projections of 5.8% and 5.6%, respectively. After recent growth moderation, an increase in net exports and domestic consumption has improved growth prospects in the People's Republic of China (PRC). The world's second largest economy is now expected to expand by 6.7% in 2017 and 6.4% in 2018.

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