MANILA, Philippines: Amidst increased central bank monetary tightening, Russia's invasion of Ukraine and COVID 19 lockdowns in China, the Asian Development Bank ADB this week cut its growth forecasts for developing Asian countries for 2022 and 2023.
The Asian Development Bank expects that the combined economy, including China and India, to grow 4.3 percent this year, after previously reducing the forecast to 4.6 percent in July from 5.2 percent in April.
There have been several headwinds since the Asian Development Outlook in April. According to Asian Development Bank Chief Economist Albert Park, more aggressive tightening by the U.S. Federal Reserve and other central banks is hurting global demand and rattling financial markets.
China's economy will likely expand 3.3 percent this year, and the Asian Development Bank expects that China's second-largest economy will grow 4.5 percent next year, slower than the previous estimate of 4.8 percent.
Southeast Asia and Central Asia are expected to grow faster than previously projected, at 5.1 percent and 3.9 percent, respectively.
The Asian Development Bank forecast for South Asia is 6.5 percent, despite a lower growth estimate for India, along with Sri Lanka's economic crisis.