MANILA: The Asian Development Bank (ADB) lowered developing Asia’s growth forecast for 2022 on July 20 to 4.6% from 5.2%, reflecting worsened economic prospects because of geopolitical tensions, monetary tightening in advanced economies and Covid-19 pandemic.
In its supplement to the Asian Development Outlook 2022, the bank’s flagship annual economic publication, the ADB also slashed its 2023 growth forecast for developing Asia to 5.2% from 5.3% reported Xinhua.
The Manila-based bank slashed its 2022 growth forecast for East Asia from 4.7% to 3.8%; South Asia’s growth forecast is lowered from 7% to 6.5% for 2022 and from 7.4% to 7.1% for 2023.
The 2022 forecast for Southeast Asia is marginally upgraded from 4.9% to 5% as domestic demand benefits from the continued lifting of Covid-19 mobility restrictions and the reopening of borders in some economies in the sub-region.
The Caucasus and Central Asia’s growth prospects are raised from 3.6% to 3.8% for 2022 and from 4% to 4.1% for 2023. This year’s growth prospects for the Pacific are revised from 3.9% to 4.7%.
The inflation forecast for developing Asia is raised from 3.7% to 4.2% for 2022 and from 3.1% to 3.5% for 2023 on higher fuel and food prices.
However, the ADB said the inflation pressures in the region “are less than elsewhere in the world.”
The ADB added that the supply disruptions and escalating sanctions imposed on Russia have spiked global commodity prices and remained higher than 2021’s already elevated levels, leading to inflationary pressure increase in many regional economies. - Bernama