DUSHANBE, July 12, 2012, Asia-Plus — Europe’s worsening financial and banking crisis and a sluggish recovery in the United States are weighing on developing Asia’s growth prospects, according to figures released today from the Asian Development Outlook Supplement (ADOS), published by the Asian Development Bank (ADB).
“Economic growth in developing Asia moderated during the first half of 2012 as slower growth in the US and euro area reduced demand for the region’s exports,” the report says. “Worries over the economic strength of important developing economies have also emerged recently.”
ADB’s latest figures predict developing Asia will expand by 6.6% in 2012 and 7.1% in 2013, lower than the 6.9% and 7.3% forecast in ADB’s Asian Development Outlook published in April.
ADOS says that lower oil prices and links to the struggling euro area will likely hurt growth in Central Asia, where economic growth began decelerating in the first half of 2012. In 2012, Central Asia is expected to grow by 5.8%, down from the previous forecast of 6.1%. In 2013, growth should go up to 6.2%, virtually unchanged from the projection made in April.
ADB is predicting that inflation in Central Asia will reach 7.1% in 2012 – a slight reduction from the 7.2% forecast in April – and 7.3% in 2013.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2011, ADB approvals including cofinancing totaled $21.7 billion.
