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- ADB: Rate hikes, Ukraine war, China woes dim Asia growth outlook
ADB: Rate hikes, Ukraine war, China woes dim Asia growth outlook
The Asian Development Bank (ADB) on Wednesday cut its growth forecasts for developing Asia for 2022 and 2023 amid mounting risks from increased central bank monetary tightening, the fallout from the war in Ukraine and COVID-19 lockdowns in China, reported Reuters.
Key updates
The ADB now expects the area's combined economy, which includes China and India, to grow 4.3% this year, after previously trimming the forecast to 4.6% in July from 5.2% in April.
For 2023, the ADB expects the region's economy to expand 4.9%, slower than the April and July forecasts of 5.3% and 5.2%, respectively, it said in the September edition of its flagship Asian Development Outlook report.
"Since the April Asian Development Outlook, various headwinds have strengthened," said ADB Chief Economist Albert Park.
"More aggressive tightening by the U.S. Federal Reserve and other central banks is denting global demand and rattling financial markets."
A significant global economic downturn would severely undermine demand for the region's exports, he warned.
China's economy will likely expand 3.3% this year, a further step down after previously trimming the forecast to 4.0% from 5.0% in April. The ADB expects the world's second-largest economy to grow 4.5% next year, slower than a previous estimate of 4.8%.
Also read: Forex Today: Dollar stronger but within range
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