The Asian Development Bank said developing Asia will maintain steady economic growth this year as higher demand from advanced economies is likely to be offset somewhat by moderating growth in China.

In its annual publication, Asian Development Outlook 2014 published Tuesday, ADB said developing Asia will grow 6.2 percent in 2014, unchanged from the estimate released last December. For the next year, the lender predicts 6.4 percent growth for the 45 member nations.

ADB President Takehiko Nakao said "Risks to the outlook have eased compared to the recent past, and policymakers in the region can manage them."

According to the ADB, the improvement in demand from the United States and the euro area will be offset somewhat by moderating growth in China.

Due to tight credit growth, pared industrial overcapacity, deepening local government debt, rising wages, currency appreciation, and the continuing shift in the government's development priorities away from quantity toward quality, Chinese growth slowed to 7.7 percent in 2013.

The lender forecast the Chinese GDP growth to slow to 7.5 percent in 2014 and to 7.4 percent in 2015.

The ADB expects the Indian economy to grow 5.5 percent this year and by 6 percent in 2015. South Asia's growth is forecast to improve to 5.3 percent in 2014 and 5.8 percent in 2015.

Meanwhile, the lender expects Central Asia to maintain its growth pace as its largest economy boosts public spending. The sub-region expanded 6.5 percent in 2013 and this is forecast to be maintained through 2015.

East Asia will see its growth trend flatten as growth moderates in China. East Asia grew by 6.7 percent in 2013, a slight uptick from 2012, and is expected to maintain that rate into 2014 and 2015, the ADB said.

RTTNews