By Ben Otto
Economic growth across developing Asia is slowing amid weak global trade and investment, the Asian Development Bank said Wednesday, trimming its forecasts for China, India and other developing countries in the region.
The ADB in a new report cut its forecast for China's 2019 growth by 0.1 percentage point to 6.1%, from a 6.2% forecast in September and growth of 6.6% last year. The bank cited trade tensions with the U.S. and pork prices that have more than doubled in a year.
For 2020, the ADB trimmed its outlook for the world's second-largest economy by 0.2 percentage point to 5.8%.
India's growth will likely slow to 5.1% this year, down from a previous forecast of 6.5%, the bank said, pointing to risk aversion in the country's financial sector, a credit crunch and slow job growth. For 2020, the ADB forecasts growth of 6.5%, versus 7.2% previously. The Indian economy expanded 6.8% in 2018.
The bank also trimmed its 2019 growth forecast for developing Asia by 0.2 percentage point to 5.2%, and by 0.3 percentage point to 5.2% for 2020. The region's gross domestic product expanded 5.9% last year.
"While growth rates are still solid in developing Asia, persistent trade tensions have taken a toll on the region and are still the biggest risk to the longer-term economic outlook," ADB Chief Economist Yasuyuki Sawada said in a press release.
Mr. Sawada added that domestic investment is also weakening in many countries amid weakening business sentiment.
The ADB noted that inflation is ticking upward across the region on the back of higher food prices.
Write to Ben Otto at firstname.lastname@example.org