ADB Lowers Asian Growth Rate Forecast
MANILA (NQN)--The Asian Development Bank (ADB) said Tuesday it cut its forecast growth rate for gross domestic product in developing Asia to 6.3%, down 0.3 point, due to a slowdown in China that is affecting the economies of Southeast Asia.
For major industrial economies worldwide, the outlook was raised by 0.1 point, due in part to the effects of Japan's economic stimulus program.
Developing Asia refers to the 45 developing-country members of the bank. In its previous outlook in April, the ADB predicted strong consumer spending would underpin overall growth in the region. But the outlook was dimmed by an accelerating downtrend, largely because China's growth rate in the April-June quarter slowed to 7.5%.
In China, companies have been slow to increase output and exports have slumped due to slower growth in overseas demand. The ADB warned investment could fall further in China due to problems with the country's shadow banking system.
Southeast Asia, meanwhile, is seeing solid domestic demand. But the ADB said these economies are likely to be hurt by the slowdown in China, which is a major trading partner. Changyong Rhee, the bank's chief economist, said the knock-on effects from China's economic slowdown has become a concern for the region.
On the other hand, the ADB raised its growth forecast for major industrialized countries to 1.1% on the back of the faster growth likely to flow from Japan's monetary easing. The economic growth forecast for Japan rose 0.6 point to 1.8%, up from the previous outlook for 1.2% growth.
Goay Joe Lie
No comments:
Post a Comment