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- Asian Development Bank cut its growth forecasts for China and India
Asian Development Bank cut its growth forecasts for China and India
The Asian Development Bank (ADB) lowered growth forecasts for China and India. According to the ADB, China is expected to expand by 6.8% in 2015, down from July estimate of a 7.0% rise, and 6.7% in 2016, down from July estimate of a 6.8% increase.
India is expected to rise by 7.4% in the financial year 2015 ending March 2016, down from July estimate of a 7.8% rise, and 7.8% in the fiscal year 2016 ending March 2017, down from July estimate of a 8.2% increase.
The downgrade of the Indian growth was driven by a weak external demand and a slower-than-expected pace of reform implementation.
The economic growth of developing Asia is expected to be 5.8% this year, down from July estimate of a 6.1% increase, and 6% in 2016, down from July estimate of a 6.2% rise.
Inflation in developing Asia is expected to decline to 2.3% in 2015 from 3% in 2014 due to low global commodity prices.
Southeast Asia is expected to grow 4.4% in 2015 and 4.9% in 2016.
"The combination of a moderating prospect in China and India, together with delayed recovery of advanced countries, weighed on our forecast for the region as a whole," ADB Chief Economist Shang-Jin Wei said.
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