Emerging Asia growing faster than China for 1st time in 30 years
Indonesia, Philippines are bright spots but India, Pakistan faltering, says ADB
China's COVID lockdowns mean its economic expansion this year will be slower than the rest of emerging Asia for the first time in more than three decades, the Asian Development Bank projected in a new report.
In an updated Asian Development Outlook report published Wednesday, the organization downgraded its forecast for China's 2022 growth to 3.3% from 5.0% in April. The bank also cut its projection for next year to 4.5% from 4.8%.
Growth forecasts are revised down from the projections made in April, to 4.3% for this year and to 4.9% for next year.
Inflation in developing Asia, while remaining lower than elsewhere in the world, is increasing amid higher energy and food prices. The regional inflation forecast is raised to 4.5% for this year and 4.0% for next year.
Several downside risks loom large. A sharp deceleration in global growth, stronger-than-expected monetary policy tightening in advanced economies, the Russian invasion of Ukraine escalating, a deeper-than-expected deceleration in the People’s Republic of China (PRC), and negative pandemic developments could all dent developing Asia’s growth.
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