Xinhua, Manila :
Economic growth in developing Asia remains robust but slow-down is expected as trade and investment weaken, according to an updated Asian Development Bank report released on Wednesday.
The report, Asian Development Outlook (ADO) 2019 Update, forecasts economic growth in the 45 economies of developing Asia at 5.4 percent this year before nudging up to 5.5 percent in 2020, down from 5.7 percent previously forecast in 2019 and 5.6 percent in 2020.
ADO is the flagship economic publication of the Manila-based bank.
The newly lowered forecasts reflect gloomier prospects for international trade due in part to escalating trade tensions between some countries, as well as slowing economic growth in advanced economies and the large economies of developing Asia, including China, India, South Korea, and Thailand.
Excluding the newly industrialized economies of China’s Hong Kong, South Korea, Singapore and China’s Taiwan, developing Asia is forecast to expand by 6.0 percent this year and 2020, also down versus ADB’s previously forecast 6.2 percent in 2019 and 6.1 percent in 2020.
In Asia, ADB Chief Economist Yasuyuki Sawada said “weakening trade momentum and declining investment are the major concerns (that need to be) monitored closely by policymakers.”
“The risk of deeper malaise in the global economy, and uncertainty over how policymakers around the world will respond to weaker global growth, may stoke volatility in global financial markets,” Sawada said, warning that “proliferating private debt in some regional economies could pose another challenge to financial stability.”
The ADO Update report says prospects for growth vary across the subregions of developing Asia.
The slowdown in global trade coupled with a sharp downswing in the electronics cycle has pulled down forecasts for China and the more open economies in East and Southeast Asia.
ADO Update forecasts China’s economy to expand 6.2 percent this year and 6.0 percent next year.
Economic growth in developing Asia remains robust but slow-down is expected as trade and investment weaken, according to an updated Asian Development Bank report released on Wednesday.
The report, Asian Development Outlook (ADO) 2019 Update, forecasts economic growth in the 45 economies of developing Asia at 5.4 percent this year before nudging up to 5.5 percent in 2020, down from 5.7 percent previously forecast in 2019 and 5.6 percent in 2020.
ADO is the flagship economic publication of the Manila-based bank.
The newly lowered forecasts reflect gloomier prospects for international trade due in part to escalating trade tensions between some countries, as well as slowing economic growth in advanced economies and the large economies of developing Asia, including China, India, South Korea, and Thailand.
Excluding the newly industrialized economies of China’s Hong Kong, South Korea, Singapore and China’s Taiwan, developing Asia is forecast to expand by 6.0 percent this year and 2020, also down versus ADB’s previously forecast 6.2 percent in 2019 and 6.1 percent in 2020.
In Asia, ADB Chief Economist Yasuyuki Sawada said “weakening trade momentum and declining investment are the major concerns (that need to be) monitored closely by policymakers.”
“The risk of deeper malaise in the global economy, and uncertainty over how policymakers around the world will respond to weaker global growth, may stoke volatility in global financial markets,” Sawada said, warning that “proliferating private debt in some regional economies could pose another challenge to financial stability.”
The ADO Update report says prospects for growth vary across the subregions of developing Asia.
The slowdown in global trade coupled with a sharp downswing in the electronics cycle has pulled down forecasts for China and the more open economies in East and Southeast Asia.
ADO Update forecasts China’s economy to expand 6.2 percent this year and 6.0 percent next year.
