ADB cuts developing Asia's growth forecast to 4.7 Pct on China, weather

TOKYO, Sept 20 (KUNA) -- The Asian Development Bank (ADB) on Wednesday slightly trimmed its growth forecast for developing Asia to 4.7 percent for 2023 from its earlier projection due to rising risks, such as China's property sector and extreme weather events.

In an update of its Asian Development Outlook, the Manila-based lender downgraded its July forecast of 4.8 percent growth this year for Asia's developing economies. However, it revised upward next year's view to 4.8 percent from 4.7 percent, saying economic growth in the region is expected to remain solid.
Developing Asia covers 46 economies in Central Asia, East Asia, South Asia, Southeast Asia and the Pacific, but excludes industrialized countries of Japan, Australia and New Zealand.
"Growth in the region was upbeat in the first half of this year, driven by healthy domestic demand and reopening in China even as a weaker global outlook reduced export demand. Rebounding tourism, resilient service sectors, healthy money transfers into the region, and improving financial conditions are all helping support economic activity, and inflation is receding in most economies after peaking last year," the ADB said in the report.
"However, weakness in China's property sector is weighing on regional prospects. Sporadic supply disruptions from the continuing Russian invasion of Ukraine, export restrictions, and the increased risk of droughts and floods caused by El Nino could once again trigger rising food prices and challenge food security," it pointed out.
"Developing Asia continues growing robustly, and inflation pressures are receding," ADB chief economist Albert Park said in a statement.
"Some central banks in the region have started to lower interest rates, which will help boost growth. Still, governments need to be vigilant against the many risks that the region faces," said Park.
The bank cut its 2023 growth forecast for China, the region's largest economy, to 4.9 percent from 5.0 percent estimate in July, while downgraded projection for India to 6.3 percent from 6.4 percent, but it maintained forecasts next year for China and India at 4.5 percent and 6.7 percent respectively.
The ADB is a multilateral development finance institution dedicated to reducing poverty in Asia and the Pacific. Established in 1966, it is now owned by 68 members, mostly from the region, as well as the US, Britain and Germany. (end) mk.bb.