Asian Development Bank trims developing Asia GDP outlook

The Asian Development Bank lowered its economic growth forecasts for developing Asia due to the Russia-Ukraine war, aggressive monetary tightening in advanced economies, and zero-COVID lockdowns in China.

Developing Asia is projected to grow 4.3% this year, down from a 5.2% forecast in its April report.

The outlook for the bloc that includes China and India for 2023 was revised down to 4.9% from 5.3%.

Price pressures in developing Asia, while remaining lower than elsewhere in the world, are increasing on higher energy and food prices, the bank said.

The regional inflation forecast is raised to 4.5% from 3.7% for this year and to 4.0% from 3.1% for the next year.

The bank cited the downside risk threatening the outlook, namely a sharp deceleration in global growth, stronger-than-expected monetary policy tightening in advanced economies, the war in Ukraine, a deeper-than-expected deceleration in China, and negative pandemic developments.

It also cut China's growth projections in 2022 to 3.3% from 5% in its April estimate. The region’s largest economy is expected to grow 4.5% next year, down from a 4.8% forecast previously.