Men work near a housing complex under construction on the outskirts of Beijing, China, on November 29, 2017.REUTERS/Thomas Peter/File Photo Obtaining license rights
MANILA, Sept 20 (Reuters) – The Asian Development Bank (ADB) said on Wednesday that developing Asia’s economic growth will decline this year, as weakness in China’s real estate sector and El Niño-related risks cloud the region’s outlook. The company announced that it expects the rate to be slightly lower than previously expected.
ADB has updated its regional economic outlook, lowering its 2023 growth forecast for developing Asia to 4.7% from the 4.8% forecast in July.
However, next year’s growth forecast for the group of 46 Asia-Pacific countries, excluding Japan, Australia and New Zealand, has been revised slightly upwards to 4.8% from 4.7%.
“Despite weaker external demand, which is hampering export-led growth, we see the region’s resilient growth to be based on fairly strong domestic consumption and investment,” ADB chief economist Albert Park said at a press conference. “
ADB has revised down its growth forecast for East, South and Southeast Asia this year, with China and India expected to grow 4.9% and 6.3% respectively, slightly below the July growth forecast of 5.0% and 6.4%. Ta.
China’s real estate crisis “poses downside risks and could constrain regional growth,” the ADB said in a report.
The Manila-based lender kept its 2024 growth forecast for China and India unchanged at 4.5% and 6.7%, respectively.
Park said that while growth has so far been strong and inflationary pressures are receding in developing Asia, governments need to be vigilant about the many challenges facing the region, including food security.
Inflation in developing Asia is expected to fall to 3.6% this year from 4.4% last year and continue to slow to 3.5% in 2024, giving central banks more policy space. ADB said the cycle of rate hikes and easing will change going forward.
Report by Enrico Dela Cruz. Additional reporting by Mikhail Flores.Editing: Kanupriya Kapoor
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