Economic growth in developing Asia this year will be slightly lower than previously expected as the weakness in China’s property sector and El Niño-related risks cloud regional prospects, the Asian Development Bank (ADB) said on Wednesday.
The ADB cut its 2023 growth forecast for developing Asia to 4.7%, from 4.8% projected in July, but the growth forecast for next year was revised slightly upwards to 4.8% from 4.7% previously.
The ADB expects China and India to grow 4.9% and 6.3% this year, respectively, slightly lower than the July growth projections of 5% and 6.4%, and maintained its 2024 growth forecasts for China and India at 4.5% and 6.7% respectively.
China’s property crisis “poses a downside risk and could hold back regional growth,” it said.
Inflation in developing Asia is forecast to ease to 3.6% this year from 4.4% last year, and continue to slow to 3.5% in 2024, giving central banks policy space, it said.