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The Asian Development Bank (ADB) has lowered its forecast for Asian economic growth this year and next. It said the Asian economy has been affected by Russia’s troop buildup in Ukraine. But the fact that central banks around the world are raising interest rates to curb inflation is also dampening the outlook.
The Asian Development Outlook 2022, released Wednesday (July 20), said the ADB has lowered its economic forecasts for developing Asian economies, including China and India, to. The ADB lowered its economic forecasts for developing Asia, including China and India, from an initial 5.2% to 4.6% in 2022 and from 5.3% to 5.2% in 2023.
The ADB has raised its forecast for Southeast Asian economies, including Thailand, to 5% from 4.9%, saying demand in those economies is likely to recover after travel restrictions were lifted to contain the COVID-19 outbreak. And many countries in the region have begun to open their borders to tourists.
In addition, the ADB raised its inflation forecast for developing Asia from 3.7% to 4.2% in 2022 and increased its inflation forecast for 2023 from 3.1% to 3.5%, reflecting higher food and fuel prices.
According to the ADB, however, inflationary pressures in Asia were lower than in other regions of the world.
“The risks to the economies of developing countries in Asia continue to come from external factors. These include the global economic slowdown, the US Federal Reserve’s accelerating interest rate hikes. and commodity prices have skyrocketed,”the ADB said in a statement.