Asia GDP forecast cut as China sticks to ‘zero COVID’ELEVATED RISKS: South Asia’s growth forecast was lowered to 6.5 percent this year and 7.1 percent next year, given the economic crisis in Sri Lanka and monetary woes in IndiaBloombergThe Asian Development Bank (ADB) cut this year’s GDP growth forecast in developing regions of Asia as China’s “zero COVID” approach to containing the virus creates ripple effects on regional supply chains and economic development. Growth in China, a key part of the developing Asia bloc, is expected to be weaker at 4 percent this year against a previous 5 percent expansion. Photo: AFPThe bank also slashed the forecast for East Asia — a region that includes Taiwan, China, Hong Kong, and South Korea — to 3.8 percent from 4.7 percent. Economic growth slowed sharply to 0.4 percent in the second quarter, when dozens of cities, including Shanghai and Changchun, imposed lockdowns. Many economists expect China is likely to miss this year’s 5.5 percent economic growth target by a significant margin.

Source: Taipei Times July 22, 2022 04:01 UTC