Developing Asia faces new era of moderate growth
The Asian Development Bank (ADB) is significantly scaling back 2012 and 2013 growth forecasts for developing Asia, saying that after years of rapid growth, the region must brace for a prolonged period of moderate expansion amidst an ongoing slump in global demand. “Developing Asia must adapt to a moderate growth environment, and countries will need to do more to reduce their reliance on exports, rebalance their sources of growth, and increase their productivity and efficiency,” said Changyong Rhee, ADB’s Chief Economist. “These measures are critical if the region is to continue lifting its people out of poverty.” In its Asian Development Outlook 2012 Update, released today, ADB projects the region’s gross domestic product (GDP) growth dropping to 6.1% in 2012, and 6.7% in 2013, down significantly from 7.2% in 2011. The deceleration of the region’s two giants – the People’s Republic of China and India – in tandem with the global slowdown, is tempering earlier optimism. The report notes