ADB downgrades growth forecast for developing Asia-Pacific economies www.nhk.or.jp
The Asian Development Bank has lowered its growth forecast for developing economies in the Asia-Pacific region this year to 4.6 percent.
The projection for 2022 that the ADB released on Thursday was cut by 0.6 percentage points from the 5.2 percent growth forecast issued in April.
Among the reasons for the downgrade, the ADB cites slower growth in China, where the government has stuck to a strict zero-COVID policy.
The bank says China's economy is expected to expand 4 percent this year, compared with its earlier projection of 5 percent.
It attributes China's slower growth to weakness in consumption caused by the lockdowns in Shanghai and instability in the housing market.
The ADB downgraded its growth forecast for India from 7.5 to 7.2 percent, saying higher-than-expected inflation will dampen consumption.
The bank raised its growth projection for Indonesia from 5 to 5.2 percent. It says higher prices for the country's coal and other key commodity exports are generating windfall export earnings.
The ADB says aggressive monetary tightening by central banks could cause turbulence in financial markets, and further rises in food prices could also pose risks for the region's economic outlook
Published Date:2022-07-21