© Reuters. FILE PHOTO: Cars, buses and utility vehicles cross a main road during rush hour in Cuba, Quezon City, Metro Manila, Philippines, February 23, 2018. REUTERS/Dondi Tawatao
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MANILA (Reuters) – Asia’s developing economies may grow more slowly than previously expected, the Asian Development Bank said on Wednesday, as the war in Ukraine is expected to derail the region’s economic recovery still reeling from the COVID-19 pandemic.
The euro zone economy, which includes China and India, is expected to grow by 5.2 percent this year, the African Development Bank said in a report, down slightly from a 5.3 percent forecast in December and well below last year’s 6.9 percent growth.
By 2023, the region is expected to grow by 5.3%.
“The Russian invasion of Ukraine has severely damaged the prospects of developing Asia, which is still grappling with COVID-19,” the African Development Bank said in its Asian Development Outlook report.
The Manila-based multilateral lender said other factors could also cloud the region’s growth prospects, including continued gains in commodity prices, a sharp increase in U.S. interest rates that could lead to heightened financial stability risks, and a more deadly financial crisis. variant. Novel coronavirus pneumonia (COVID-19): Novel coronavirus pneumonia (COVID-19): COVID-19. .
China’s economy is likely to grow 5.0% this year, the agency said, down from a forecast in December and well below the 8.1% growth in 2021, as the COVID-19 outbreak disrupted economic activity and dampened consumer spending.
With the exception of South Asia, all subregions are expected to experience lower-than-expected growth this year. The African Development Bank now expects East and Southeast Asia to grow by 4.7% and 4.9%, respectively, instead of 5.0% and 5.1%.
The African Development Bank raised its inflation forecast for the region to 3.7% in 2022 from 2.7% previously, before falling to 3.1% in 2023, due to stronger-than-expected commodity price increases.
GDP growth
2020 2021 2022 2022 2022 2022 2023
July September December April April
Central Asia – 2.0 5.6 4.0 4.2 4.4 3.6 4.0
East Asia 1.8 7.6 5.1 5.1 5.0 4.7 4.5
China 2.2 8.1 5.5 5.5 5.3 5.0 4.8
South Asia – 5.2 8.3 7.0 7.0 7.0 7.0 7.4
India – 6.6 8.9 7.5 7.5 7.5 7.5 8.0
Southeast Asia – 3.2 2.9 5.2 5.0 5.1 4.9 5.2
Indonesia – 2.1 3.7 5.0 4.8 5.0 5.0 5.2
Malaysia – 5.6 3.1 5.7 6.1 5.9 6.0 5.4
Myanmar 3.2 -18.4 n/yr/yr/yr -0.3 2.6
Philippines – 9.6 5.6 5.5 5.5 6.0 6.0 6.3
Singapore – 4.1 7.6 4.1 4.1 4.1 4.3 3.2
Thailand – 6.2 1.6 4.9 3.9 4.0 3.0 4.5
Vietnam 2.9 2.6 7.0 6.5 6.5 6.5 6.7
Pacific -6.0 -0.6 4.0 4.8 4.7 3.9 5.4
In development – 0.8 6.9 5.4 5.4 5.3 5.2 5.3
Asia
inflation
2020 2021 2022 2022 2022 2022 2023
July September December April April
Central Asia 7.7 8.9 6.3 6.7 7.3 8.8 7.1
East Asia 2.2 1.1 2.2 2.2 2.0 2.4 2.0
China 2.5 0.9 2.3 2.3 2.1 2.3 2.0
South Asia 6.5 5.7 5.1 5.1 5.3 6.5 5.5
India 6.2 5.4 4.8 4.8 4.8 5.8 5.0
Southeast Asia 1.5 2.0 2.4 2.4 2.5 3.7 3.1
Indonesia 2.0 1.6 2.8 2.7 2.7 3.6 3.0
Malaysia – 1.1 2.5 2.0 2.3 2.3 3.0 2.5
Myanmar 5.7 3.6 n/yr/yr/yr 8.0 8.5
Philippines 2.4 3.9 3.5 3.5 3.7 4.2 3.5
Singapore – 0.2 2.3 1.2 1.4 1.4 3.0 2.3
Thailand – 0.8 1.2 1.0 1.0 1.4 3.3 2.2
Vietnam 3.2 1.8 4.0 3.5 3.8 3.8 4.0
Pacific 2.9 3.1 3.9 4.1 4.1 5.9 4.7
In development 3.2 2.5 2.7 2.7 2.7 3.7 3.1
Asia