Chinese laborers working at a construction site at sunset in Chongqing, China.
Asia’s developing economies may be showing signs of recovery, but the Asian Development Bank (ADB) cut its growth forecasts for them yet again — thanks to China’s prolonged zero-Covid policy.
But this will be the first time in more than three decades that the rest of developing Asia will grow faster than China, the Manila-based lender said in its latest outlook report released Wednesday.
“The last time was in 1990, when (China’s) growth slowed to 3.9% while GDP in the rest of the region expanded by 6.9%,” it said.
The ADB now expects developing Asia — excluding China — to grow by 5.3% in 2022, and China by 3.3% in the same year.
Both figures are further downgrades — in July, for example, it slashed its growth forecast for China to 4% from 5%. The ADB attributed that to sporadic lockdowns from the nation’s zero-Covid policy, problems in the property sector, and slowing economic activity in light of weaker external demand.
It also lowered its 2023 forecast for China’s economic growth to 4.5% from April’s 4.8% outlook on “deteriorating external demand continuing to dampen investment in manufacturing.”
Though the region is showing signs of continued recovery through revived tourism, global headwinds are slowing down overall growth, the ADB said.
For the region, the ADB now expects emerging Asian economies to grow by 4.3% in 2022 and 4.9% in 2023 — a downgraded outlook from July’s revised predictions of 4.6% and 5.2% respectively, according to its latest outlook report released Wednesday.
The latest updates to the Asian Development Outlook also predicted that the pace of rising prices will accelerate even further to 4.5% in 2022 and 4% in 2023 — an upwards revision July’s predictions of 4.2% and 3.5% respectively, citing added inflationary pressures from food and energy costs.
“Regional central banks are raising their policy rates as inflation has now risen above pre-pandemic levels,” it said. “This is contributing to tighter financial conditions amid a dimming growth outlook and accelerated monetary tightening by the Fed.”
“The PRC remains the big exception because of its intermittent but stringent lockdowns to stamp out sporadic outbreaks,” the ADB said, referring to the People’s Republic of China.
In contrast to that, “Easing pandemic restrictions, increasing immunization, falling Covid-19 mortality rates, and the less severe health impact of the Omicron variant are underpinning improved mobility in much of the region,” it added in the report.
Smart Buildings Ratings for Hotels to FIVE Palm Jumeirah and FIVE Jumeirah Village
Chinese national, Italian tourists killed in Egypt mini-bus collision, 5 others seriously injured
Bus packed with elementary school students crashes into house
Travis Pastrana’s 862-HP Subaru GL Wagon Dissected On Video
Leadership Conference, Brennan Center question Biden counter-terrorism strategy
“Not the homosexual is perverted”: filmmaker Rosa von Praunheim turns 80
5 Thanksgiving Food Safety Mistakes That Can Make You Seriously Sick
How to Cope If Family Gatherings Trigger Your Social Anxiety
Dtech IPO In Shenzhen Mints New China Billionaire Couple
New Jersey Told To Stop Cute, Creative Road Sign Safety Messages
Amazon’s Creep Into Health Care Has Some Experts Spooked
Elvis Presley’s Daughter Lisa Marie Debunks Infamous Myth Surrounding Her Famous Father’s Favorite Sandwich
Here’s When Borrowers Will Get Student Loan Forgiveness Under Biden’s Account Adjustment
Boston takes step toward lowering voting age to 16 in city elections
How ‘Buy Now, Pay Later’ Really Works
Auto19 hours ago
Toyota GR Prius Renderings Imagine A Performance Hybrid That Won’t Exist
News21 hours ago
‘Love & Marriage: Huntsville’: Why Melody Holt Says Staying With Martell Amid His Cheating Was ‘Biggest Betrayal to Herself’
Lifestyle20 hours ago
'GMA' Anchors Amy Robach and T.J. Holmes' Candid Quotes About Each Other
News22 hours ago
Saudi Arabia vs Mexico – World Cup 2022: Live score, team news and updates
Finance24 hours ago
Today in Crypto: Komodo Launches AtomicDEX Web, Animoca Plans a $2 Billion Fund to Invest in Metaverse Firms, SEBA Opens Hong Kong Office
Auto17 hours ago
Nissan Borrows $1.4 Billion To Make EV, Carbon-Neutral Investments
News19 hours ago
Fox News continues cable news dominance in November, ‘The Five’ most-watched show for eighth-straight month
Lifestyle12 hours ago
Musk Says Apple CEO Cleared Up ‘Misunderstanding’ About Twitter Potentially Being Removed From App Store