Asian Development Bank raises growth forecast for region, but warns of risks from trade sanctions
The Asian Development Bank says it expects developing economies in the region to grow at a 5% annual pace this year, up slightly from its earlier estimate of 4.9% growth
Developing economies in Asia are forecast to grow at a 5.0% annual pace this year, helped by a strong U.S. economy and surging demand for computer chips that power artificial intelligence, the Asian Development Bank said in a report Wednesday.
The forecast was revised upward slightly from the ADB's April estimate of 4.9% growth.
However, the regional lender warned of the potential threat of more protectionist measures, such as higher tariffs on exports from China, depending on the outcome of the U.S. presidential election.
The report highlighted several positive trends, including a rebound in exports from Asia of computer chips and other advanced electronics this year due to rapid adoption of artificial intelligence. It also noted that energy and food prices are moderating, though inflation remains painfully high in countries such as Pakistan, Laos and Myanmar.
