ECONOMIC growth in developing Asia is picking up, underpinned by China's rebound and strength in countries such as Indonesia, the Asian Development Bank said in a report yesterday, while warning that political disputes pose an increased threat to growth.

The Manila-based lender's 2013 Asian Development Outlook said some big dangers to regional growth have faded, such as the possibility of the euro common currency breaking up or a "US fiscal shock" stemming from brinkmanship over the debt ceiling in the world's biggest economy.

But it said: "Political risks are emerging as the main threats to the region's continued robust growth." Political disputes are "calling into question the ability of authorities to find compromise solutions to nagging fiscal problems in the US, deepening austerity fatigue in the euro area and simmering border disputes in Asia."

The ADB said developing Asia, which includes giant emerging economies such as China, India and Indonesia, will expand 6.6 percent this year, unchanged from its previous forecast in December. Growth is forecast to inch higher to 6.7 percent in 2014. The region grew 6.1 percent in 2012.

Developing Asia includes 45 developing or newly industrialized countries in Asia and the Pacific but excludes Japan.