South Asia will remain the fastest growing of all sub-regions in Asia and the Pacific, with growth on track to meet original projections of 7.0% in 2017 and 7.2% in 2018, according to the report. India — the sub-region's largest economy — is expected to achieve previous growth projections of 7.4% in 2017 and 7.6% in 2018, primarily from strong consumption.

Growth projections for Southeast Asia are expected to remain at 4.8% in 2017 and 5.0% in 2018, with accelerating growth for Malaysia, the Philippines, and Singapore, although this trend is slightly dampened by the slower-than-anticipated expansion in Brunei Darussalam. Robust domestic demand — particularly private consumption and investment — will continue to support growth in the sub-region, according to the report.

The outlook for Central Asia this year has also improved as stronger domestic demand and exports in some countries have fuelled an unexpected recovery in the sub-region. Growth is expected to reach 3.2% in 2017 and 3.8% in 2018 compared to the 3.1% and 3.5% original projections, respectively.

Growth in the Pacific is expected to remain at 2.9% in 2017 and 3.3% in 2018 with Papua New Guinea — the sub-region's largest economy — continuing its gradual recovery due to rebounding mining and agriculture industries. Stronger tourism prospects are also expected to drive growth further in the sub-region, particularly in Fiji and Palau.

Consumer price inflation in the region, meanwhile, is projected to be lower from the previous estimate on the back of steady international oil and food prices despite increasing demand due to enough supplies and favourable weather conditions. Price inflation is now expected to drop to 2.6% in 2017 and 3.0% in 2018 compared to the original projections of 3.0% and 3.2%, respectively.

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