Economic growth forecast for Asia slashed to 6%

Market jitters in India, China feared.

Softer than expected economic activity in the People’s Republic of China (PRC) and India and jitters over the United States (US) quantitative easing (QE) program will weigh on Asia and the Pacific’s growth prospects in the near term, says a new Asian Development Bank (ADB) report.

“Asia and the Pacific 2013 growth will come in below earlier projections due to more moderate activity in the region’s two largest economies and effects of QE nervousness,” said ADB Chief Economist Changyong Rhee.

“While economic activity will edge back up in 2014, current conditions highlight the need for the region to exercise vigilance to safeguard financial stability in the short term while accelerating structural reforms to sustain economic growth in the longer term.”

In an update of its flagship annual economic publication, Asian Development Outlook 2013, (ADO 2013) released today, ADB revised down its 2013 gross domestic product (GDP) growth forecast for the region to 6% from 6.6% seen in April. For 2014, growth is now projected at 6.2% from 6.7% in April. In 2012, growth came in at 6.1%.