ADB trims Asia growth forecasts on China slowdown

MANILA, July 16, 2013 (AFP) – China’s slowing economic growth is weakening momentum throughout the rest of Asia, the Asian Development Bank said Tuesday as it revised down its forecasts for the region. A day after Beijing released data showing its economy slowed for a second successive month in April-June, the Manila-based ADB trimmed its outlook for developing Asia this year to 6.3 percent, from 6.6 percent.

In the update to its annual Asian Development Outlook publication, first published in April, the bank also pared its 2014 forecast for developing Asia to 6.4 percent, from 6.7 percent.

The update is only a little better that what the bank described in the report as the region’s “relatively sluggish” growth pace of 6.1 percent last year.

“The drop in trade and scaling back of investment are part of a more balanced growth path for (China), and the knock-on effect of its slower pace is definitely a concern for the region,” the bank’s chief economist, Changyong Rhee, said in a statement.

“But we are also seeing more subdued activity across much of developing Asia,” Rhee added.

Developing Asia groups 45 nations or territories from Central Asia through to the Pacific islands,