HONG KONG, September 14, 2011 (AFP) – Asia’s developing economies will post slower-than-expected growth this year and next as key trading partners reduce orders due to worries about the global economy, a report said Wednesday. However, the region will continue to see strong expansion as it makes up for lost exports to the developed world by increasing trade with neighbouring economies, the study by the Asian Development Bank added.
The bank said the region’s economies would expand 7.5 percent this year, down from its 7.8 percent forecast in April, while 2012 would also see 7.5 percent growth, down from a previous 7.7 percent estimate.
Slower demand in the US and Europe “continues to cast a cloud over the region,” said the Manila-based bank, adding that export growth in leading economies, including trade powerhouse China, had slowed “substantially.”
“At the same time, strong domestic consumption and expanding intra-regional trade are helping to underpin still solid growth levels (in developing Asia),” said Changyong Rhee, the bank’s chief economist.
“Since the onset of the global recovery, the growth in exports to (China) from several Asian economies has been stronger than their exports to the rest of t