Despite signs of recovery in Asia’s developing countries, the Asian Development Bank (ADB) once again lowered its projections for their development due to China’s ongoing zero-COVID policy.
However, this will mark the first time in more than three decades that developing Asia as a whole will grow more quickly than China, according to the Manila-based lender’s most recent outlook report.
“The last time was in 1990, when (China’s) growth slowed to 3.9% while GDP in the rest of the region expanded by 6.9%,” it said.
The Asian Development Bank now anticipates that China will grow by 3.3% in 2022 and 5.3% in developing Asia. Both numbers represent additional reductions; in July, for instance, it reduced its growth prediction for China from 5% to 4%.
That was attributed by the Asian Development Bank to irregular lockdowns brought on by the country’s zero-COVID policy, issues in the real estate market, and a slowdown in economic activity because of decreased foreign demand.
As a result of “deteriorating external demand continuing to limit investment in manufacturing” it also cut its projection for China’s economic growth in 2023 from 4.8% to 4.5%.
Although the region is exhibiting signs of ongoing recovery thanks to a resurgence in tourism, the Asian Development Bank stated that global challenges are hurting overall growth.
According to the Asian Development Bank’s most recent outlook report, the region’s rising Asian economies will grow by 4.3% in 2022 and 4.9% in 2023, down from revised estimates made in July of 4.6% and 5.2%, respectively.