The Asian Development Bank forecasts further slowdown in developing Asia and cited against the backdrop of slowing global demand and persistent trade tensions. In the Asian Development Outlook, ADB projects growth in developing Asia to slow from 5.9% in 2018 to 5.7% in 2019 and 5.6% in 2020. Excluding newly industrialized economies, growth is projected to slow from 6.4% in 2018 to 6.2% in 2019 and 6.1% in 2020.
The report warned that risks remained “tilted to the downside”. It said “A drawn-out or deteriorating trade conflict between the People’s Republic of China and the United States could undermine investment and growth in developing Asia. With various uncertainties stemming from US fiscal policy and a possible disorderly Brexit, growth in the advanced economies could turn out slower than expected, undermining the outlook for the People’s Republic of China and other economies in the region. Though abrupt increases in US interest rates appear to have ceased for the time being, policy makers must remain vigilant in these uncertain times.”