ADB trims growth forecasts as Asia's biggest economies slow

The Asian Development Bank has trimmed its forecasts for economic growth in developing Asia this year and next year.

The move came as growth in China and India is weighed down by both external and domestic factors. In a supplement to its Asian Development Outlook 2019 Update released in September, ADB now expects gross domestic product in the region to expand 5.2% in both 2019 and 2020, down from the September forecast of 5.4% growth this year and 5.5% next year.

The supplement forecasts inflation of 2.8% in 2019 and 3.1% in 2020, up from the September prediction that prices would rise 2.7% this year and next.

Growth in China is now expected at 6.1% this year and 5.8% next year due to trade tensions and a slowdown in global activity coupled with weaker domestic demand. India’s growth is now seen at a slower 5.1% in fiscal year 2019 as the foundering of a major nonbanking financial company in 2018 led to a rise in risk aversion in the financial sector and a credit crunch.