MANILA: The Asian Development Bank (ADB) on Dec 14 trimmed its economic growth forecast for the Asia-Pacific region for this year and 2023 amid worsening global conditions reported dpa.
The Manila-based lender said the region’s economy was now expected to grow 4.2% in 2022 and 4.6% in 2023, down from 4.3% and 4.9%, respectively.
Monetary policy tightening by central banks globally, the Russian invasion of Ukraine, and recurring Covid-19 lockdowns in China were slowing down the recovery from the pandemic, the ADB said in an update to its annual Asian Development Outlook report.
“Asia and the Pacific will continue to recover, but worsening global conditions mean that the region’s momentum is losing some steam as we head into the new year,” ADB chief economist Albert Park said.
“Governments will need to work together more closely to overcome the lingering challenges of Covid-19, combat the effects of high food and energy prices — especially on the poor and vulnerable — and ensure a sustainable, inclusive economic recovery,” he added.
The bank lowered its forecast for inflation in Asia and the Pacific to 4.4% this year, from 4.5%. But it raised the projection for next year to 4.2% from 4%, due to lingering inflationary pressures from energy and food.
China, the largest economy in the region, was now forecast to expand only 3% this year, compared to the previous projection of 3.3%. In 2023, China’s economic growth projection was cut to 4.3% from 4.5%.
Gross domestic product growth projections for India, the second largest economy in the region, were maintained at 7% this fiscal year and 7.2% in the next. - Bernama
