ADB trims Asia growth outlook
The Asian Development Bank (ADB) on July 16 trimmed its growth outlook for developing Asia for 2013-2014 due to an ongoing slowdown in China, which is expected to bring subdued economic activity across the region.
The ADB revised its average growth forecast downward for its 45 developing member countries from 6.6 per cent to 6.3 per cent in 2013 and from 6.7 per cent to 6.4 per cent in 2014, the Manila-based bank stated in its latest edition of Asian Development Outlook 2013.
Most notably, the ADB cut its growth forecast for China by a half a percentage point for both 2013 and 2014, revising 2013 projections from 8.2 per cent to 7.7 per cent and 2014 projections from 8.0 per cent to 7.5 per cent.
“Developing Asia had difficulty building momentum in the first of half of 2013, despite the marginally better outlook for the advanced economies,” the report noted. “Although the downward revision to growth forecasts for the People’s Republic of China is a key factor underlying the aggregate, unexpectedly subdued economic activity cuts across sub-regions.”
“The drop in trade and scaling back of investment are part of a more balanced growth path for the PRC (People’s Republic of China), and the knock-on effect of its slower pace is definitely a concern for the region,” the ADB’s Chief Economist Changyong Rhee was quoted in a statement.
“We are also seeing more subdued activity across much of developing Asia,” he said.
This report comes after China released its quarterly GDP growth on Monday for the April to June timeframe of 7.5 per cent, which happens to be the ninth quarter in the past ten that expansion has weakened.
On a positive note for central banks, the ADB forecasts that inflationary pressures will be benign due to decelerating growth across the region and continued weakness in commodity prices as a result of soft global demand.
To converse with this author, contact him via Twitter @EM_Equity
[caption id="attachment_12575" align="alignleft" width="188"] Click to enlarge[/caption] The Asian Development Bank (ADB) on July 16 trimmed its growth outlook for developing Asia for 2013-2014 due to an ongoing slowdown in China, which is expected to bring subdued economic activity across the region. The ADB revised its average growth forecast downward for its 45 developing member countries from 6.6 per cent to 6.3 per cent in 2013 and from 6.7 per cent to 6.4 per cent in 2014, the Manila-based bank stated in its latest edition of Asian Development Outlook 2013. Most notably, the ADB cut its growth forecast for China...
The Asian Development Bank (ADB) on July 16 trimmed its growth outlook for developing Asia for 2013-2014 due to an ongoing slowdown in China, which is expected to bring subdued economic activity across the region.
The ADB revised its average growth forecast downward for its 45 developing member countries from 6.6 per cent to 6.3 per cent in 2013 and from 6.7 per cent to 6.4 per cent in 2014, the Manila-based bank stated in its latest edition of Asian Development Outlook 2013.
Most notably, the ADB cut its growth forecast for China by a half a percentage point for both 2013 and 2014, revising 2013 projections from 8.2 per cent to 7.7 per cent and 2014 projections from 8.0 per cent to 7.5 per cent.
“Developing Asia had difficulty building momentum in the first of half of 2013, despite the marginally better outlook for the advanced economies,” the report noted. “Although the downward revision to growth forecasts for the People’s Republic of China is a key factor underlying the aggregate, unexpectedly subdued economic activity cuts across sub-regions.”
“The drop in trade and scaling back of investment are part of a more balanced growth path for the PRC (People’s Republic of China), and the knock-on effect of its slower pace is definitely a concern for the region,” the ADB’s Chief Economist Changyong Rhee was quoted in a statement.
“We are also seeing more subdued activity across much of developing Asia,” he said.
This report comes after China released its quarterly GDP growth on Monday for the April to June timeframe of 7.5 per cent, which happens to be the ninth quarter in the past ten that expansion has weakened.
On a positive note for central banks, the ADB forecasts that inflationary pressures will be benign due to decelerating growth across the region and continued weakness in commodity prices as a result of soft global demand.
To converse with this author, contact him via Twitter @EM_Equity
