Economic growth in developing Asia remains robust but prospects have further dimmed and risks to the region’s economies are rising as trade and investment weaken, according to Asian Development Outlook (ADO) 2019 Update, the Asian Development Bank’s (ADB) flagship economic publication.
The report forecasts economic growth in the 45 countries of developing Asia at 5.4% this year before nudging up to 5.5% in 2020.
The newly lowered forecasts reflect gloomier prospects for international trade due in part to escalating trade tensions between the People’s Republic of China (PRC) and the United States (US), as well as slowing economic growth in advanced economies and the large economies of developing Asia, including the PRC, India, the Republic of Korea, and Thailand.
Excluding the newly industrialized economies of Hong Kong, China; the Republic of Korea; Singapore; and Taipei,China, developing Asia is forecast to expand by 6.0% this year and next year.
The PRC–US trade conflict could well persist into 2020 while major global economies may struggle even more than we currently anticipate. In Asia, weakening trade momentum and declining investment are the major concerns
ADB Chief Economist Mr. Yasuyuki Sawada.
“These are all issues that policymakers must monitor closely.”
The prospects for growth vary across the subregions of developing Asia.
The slowdown in global trade coupled with a sharp downswing in the electronics cycle has pulled down forecasts for the PRC and the more open economies in East and Southeast Asia.
ADO 2019 Update forecasts the PRC economy to expand 6.2% this year and 6.0% next year. East Asia…
