The Asian Development Bank (ADB) has lowered its economic growth forecasts for developing Asia and the Pacific amid a worsened global outlook.
A supplement to the Asian Development Outlook 2022 released Wednesday expected the region’s economy to grow by 4.2 per cent this year and 4.6 per cent next year, lower than its previous forecast in September at 4.3 per cent and 4.9 per cent, respectively.
Even with the downgraded forecasts, the ADB said developing Asia will still do better than other regions globally in terms of growth.
The report said the monetary policy tightening by central banks globally and in the region, geopolitical risk, and lingering challenges of the pandemic are among the major reasons that slow down the region’s recovery.
“Asia and the Pacific will continue to recover, but worsening global conditions mean that the region’s momentum is losing some steam as we head into the new year,” ADB Chief Economist Albert Park said.
“Governments will need to work together more closely to overcome the lingering challenges of Covid-19, combat the effects of high food and energy price, especially on the poor and vulnerable, and ensure a sustainable, inclusive economic recovery,” he added.
The ADB also lowered its forecast for inflation in developing Asia and the Pacific this year to 4.4 per cent from 4.5 per cent.
However, the bank raised its projection for next year to 4.2 per cent from 4.0 per cent due to inflationary pressures from energy and food.
As ADB’s flagship annual economic publication, the Asian Development Outlook is published every April, with an update in September and brief supplements released generally in July and December.