AVN 65.31 Decreased By ▼ -0.86 (-1.3%)
BAFL 30.25 No Change ▼ 0.00 (0%)
BOP 4.63 Decreased By ▼ -0.10 (-2.11%)
CNERGY 3.89 Decreased By ▼ -0.12 (-2.99%)
DFML 13.50 Decreased By ▼ -0.60 (-4.26%)
DGKC 42.15 Decreased By ▼ -1.54 (-3.52%)
EPCL 46.13 Increased By ▲ 1.48 (3.31%)
FCCL 11.45 Decreased By ▼ -0.38 (-3.21%)
FFL 5.19 Increased By ▲ 0.22 (4.43%)
FLYNG 5.82 Decreased By ▼ -0.28 (-4.59%)
GGL 10.04 Decreased By ▼ -0.34 (-3.28%)
HUBC 63.21 Increased By ▲ 0.91 (1.46%)
HUMNL 5.73 Decreased By ▼ -0.12 (-2.05%)
KAPCO 27.81 Increased By ▲ 0.26 (0.94%)
KEL 2.15 Decreased By ▼ -0.06 (-2.71%)
LOTCHEM 25.37 Decreased By ▼ -1.23 (-4.62%)
MLCF 21.65 Decreased By ▼ -0.87 (-3.86%)
NETSOL 84.95 Decreased By ▼ -1.25 (-1.45%)
OGDC 86.64 Increased By ▲ 0.37 (0.43%)
PAEL 10.96 Decreased By ▼ -0.31 (-2.75%)
PIBTL 4.21 Decreased By ▼ -0.07 (-1.64%)
PPL 78.65 Decreased By ▼ -1.43 (-1.79%)
PRL 13.61 Decreased By ▼ -0.05 (-0.37%)
SILK 0.88 Decreased By ▼ -0.02 (-2.22%)
SNGP 41.00 Decreased By ▼ -0.75 (-1.8%)
TELE 6.01 Decreased By ▼ -0.20 (-3.22%)
TPLP 16.02 Decreased By ▼ -0.25 (-1.54%)
TRG 111.89 Decreased By ▼ -0.66 (-0.59%)
UNITY 14.01 Decreased By ▼ -0.34 (-2.37%)
WTL 1.14 Decreased By ▼ -0.06 (-5%)
BR100 4,026 Decreased By -48.6 (-1.19%)
BR30 14,402 Decreased By -123 (-0.85%)
KSE100 40,451 Decreased By -396 (-0.97%)
KSE30 15,110 Decreased By -101.7 (-0.67%)
Follow us

MANILA: The Asian Development Bank on Wednesday cut its 2022 growth forecast for developing Asia, with crippling Covid-19 lockdowns in China, conflict in Ukraine and efforts to combat inflation dragging on the region.

While easing pandemic restrictions had spurred consumer spending and investment in the region, the Philippines-based bank warned of “global headwinds” to the recovery as food and fuel prices soared and central banks hiked interest rates.

As a result, the bank slashed its 2022 growth forecast for developing Asia – which refers to the 46 members of the ADB, stretching from the Cook Islands in the Pacific to Kazakhstan in Central Asia – to 4.3 percent.

That compares with its April forecast of 5.2 percent growth. The region grew by 7.0 percent in 2021.

ADB chief economist Albert Park warned “risks loom large” for the region’s outlook and urged governments to remain “vigilant”.

Infrastructure, livelihood: ADB says will provide new aid package soon

“A significant downturn in the world economy would severely undermine demand for the region’s exports,” Park said.

“Stronger-than-expected monetary tightening in advanced economies could lead to financial instability. And growth in the PRC (China) faces challenges from recurrent lockdowns and a weak property sector.”

China’s growth forecast for 2022 was reduced to 3.3 percent from 5.0 percent, as Beijing pursues a zero-Covid strategy that has devastated the world’s second-largest economy.

Chinese officials are under pressure to curb even the smallest virus outbreaks swiftly, ahead of a key political meeting in October where President Xi Jinping is expected to secure an unprecedented third term.

Officials have imposed targeted lockdowns and travel restrictions, disrupting businesses and forcing millions of people to stay home.

Park said the slowdown was “weighing heavily” on the region’s projections.

Excluding China from the overall forecast, the rest of developing Asia will grow 5.3 percent. “For the first time in more than three decades, the rest of developing Asia will grow faster than (China),” the ADB noted.

The bank also raised its inflation forecast to 4.5 percent from 3.7 percent, as Russia’s invasion of Ukraine and supply chain disruptions drive up food and energy prices.

While monetary policymakers in the region have hiked interest rates, some central banks may need to do more to tame inflation and prevent capital outflows, it said.

Comments

Comments are closed.

ADB cuts ‘developing Asia’ growth forecast as China lockdowns bite

‘Plan C conspiracy’ Irked by allegation, PPP says will send legal notice to IK

LPG hits historic high of Rs300/kg: LPGA demands setting up of probe commission

50pc duty imposed on import of ‘Mild Hybrid Vehicles’

Al-Nahyan due tomorrow to discuss trade, investment

Flood-hit areas: Rs8.39bn subsidy to be provided to farmers

Pakistan expresses interest in possibility of currency swap with Russia

FBR readies presentation for IMF

Italy’s Meloni in Libya to conclude $8bn gas deal

Ogra rejects oil price speculations

Live debate on economy: Tarin accepts challenge