ADB Cuts Developing Asia’s Growth Prospect
By Bhaskar Prasad | December 7, 2012 4:27 PM EST
The Asian Development Bank slightly lowered the 2012 and 2013 growth forecasts for developing Asia, citing the persisting weakness in the Indian economy and slowdown in the East Asian economies.
According to the Asian Development Outlook released Friday by the ADB, developing Asia is expected to grow 6.0 percent in 2012 and 6.6 percent in 2013, down by 0.1 percent. “Available data through the third quarter of 2012 confirm that, as a whole, developing Asia’s economic growth is cooling compared with last year’s 7.2 percent,” the ADB said in the report.
Meanwhile, the ADB sounded positive about China, which it expects to grow by 7.7 percent in 2012 and 8.1 percent in 2013. The ADB cited that China’s industrial production rose in October compared to that in the previous month, indicating an upswing in the manufacturing output.
The data released last month by the National Bureau of Statistics of China showed that the country’s industrial production, which measures the change in the total inflation-adjusted value of output produced by manufacturers, mines and utilities, rose to 9.6 percent in October, up from 9.2 percent in September and also more than the analysts’ expectation of 9.4 percent.
However, the ADB has concerns about India with its growth forecast lowered to 5.4 percent from 5.6 percent in fiscal year 2012 and to 6.5 percent from 6.7 percent in FY2013. India’s industrial output fell in September compared to that in the same month last year, indicating that the country’s economy is under pressure.
According to the data released last month by the Ministry of Statistics and Program Implementation, India’s industrial production declined 0.4 percent in September compared to that in the same month last year, down from a 2.3 percent rise in August and also below the analysts’ expectation of a 2.8 percent increase.
The continuing debt crisis in Europe and the weakness in the U.S. economy have also hurt the growth in the developing Asian economies. “Looking ahead, considerable uncertainties remain over the strength of the US economy. Enduring weakness in Europe and the looming ‘fiscal cliff’—with little sign to date of clear resolution—are weighing down prospects for the US economy,” the ADB added.
The ADB has revised the inflation forecast for developing Asia to 4 percent from 4.2 percent in 2012, citing that the international food price situation is expected to ease the inflationary pressures.
To contact the editor, e-mail:
Most Popular Slideshows
- Gennady Golovkin Next Fight Options: Canelo Alvarez, Miguel Cotto Or Julio Cesar Chavez Jr.
- NFL MNF: Pittsburgh Steelers 30, Houston Texans 23 [PHOTOS]
- 2014 MLB World Series Game 1: San Francisco Giants 7, Kansas City Royals 1 [PHOTOS]
- 2014 MLB World Series - Game 2: Kansas City Royals 7, San Francisco Giants 2 [PHOTOS]
Join the Conversation
- Travel Alert: Over 200 Canadians Infected with Mosquito-Borne Chikungunya Virus
- Economic Growth In US And Sub-Saharan Africa Allay 2015 Recession Fears
- US Dedicates 5 Airports for Travellers From Ebola-Stricken Nations, Lawmakers Want Travel Ban
- Canadian Ebola Drug: Tekmira Firm Starts Limited Manufacturing of Vaccine, Available By December; Shares Up
- WHO Races to Release Ebola Serum in 2 Weeks, Vaccines in January
- No Mercy: ISIS, Father Stones to Death Daughter for Alleged Adultery
- Boy Stoned To Death For Alleged Rape, Victim Receives Dowry From Militants
- ASUS Releases A Teaser Indicating The Arrival of New Zenfone and ZenWatch On October 28
- Russia is Creating Underwater Combat Robots to Protect its Arctic Territories
- iOS 8 Jailbreak Release Date is Doomed as Team Evad3rs Opts Out, Pangu Hits Snag – Report
- Google Nexus 6 vs. iPhone 5S: 4 Important Things to Consider Before Switching to Android Lollipop
- Swedish Military Spots ‘Russian Submarine’ Off Stockholm Coast, An Alarming ‘Security Game Changer’