Asia’s economic growth outlook slashed on China, Ukraine fears

by | Jul 20, 2022 | World

Asian Development Bank forecasts region’s developing economies to grow 4.6 percent in 2022 amid worsening conditions.The Asian Development Bank (ADB) has slashed its economic forecasts for Asia, citing deteriorating conditions due to China’s “zero COVID” lockdowns, rising interest rates in developed economies and the war in Ukraine.
Asia’s developing economies, which include China and India, are expected to grow 4.6 percent in 2022 and 5.2 percent in 2023, according to the ABD’s latest economic outlook released on Thursday.
The ADB in April predicted the region’s developing bloc would expand 5.2 percent and 5.3 percent, respectively.
China’s economy is forecast to expand 4 percent, revised down from 5 percent, amid “disruption from new COVID-19 lockdowns” and “weaker global demand”.
Defying a global trend towards living with COVID-19, authorities in the world’s second-largest economy are continuing to roll out lockdowns and travel restrictions as part of a draconian “dynamic zero COVID” policy aimed at stamping the virus out.
India’s economy is predicted to grow 7.2 percent this year, down from a 7.5 percent expansion forecast in April, although growth is anticipated to rebound to 7.8 percent in 2023.
Bucking the negative trend, Pacific island nations’ growth outlook was revised upward to 4.7 percent, from 3.9 percent, amid a stronger-than-expected rebound in tourism in Fiji.
“The economic impact of the pandemic has declined across most of Asia, but we’re far from a full and sustainable recovery,” ADB Chief Economist Albert Park said.
“On top of the slowdown in t …

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