The Asian Development Bank has cut its 2016 growth projection for developing economies in Asia and the Pacific to 5.6 percent, down from its earlier forecast of 5.7 percent, but says their solid performances will help offset softness from the U.S. economy and near-term market shocks from Britain's vote to exit from the European Union.

The Manila-based lender's report released Monday says the growth forecast for 2017 of 5.7 percent made in March for developing Asian economies remains unchanged.

Shang-Jin Wei, ADB's chief economist, says the Brexit vote has affected developing Asia's currency and stock markets but its impact on the real economy in the short term is expected to be small. He urges policy makers to remain vigilant due to tepid growth prospects in the major industrial economies.