, July 15, 2013 /PRNewswire-USNewswire/ -- Continued tepid demand
from the major industrial economies coupled with slower growth in
the People's Republic of China
(PRC) are weighing on the outlook for developing
, says a new Asian Development Bank (ADB) report.
Asian Development Outlook Supplement
released today trimmed the 2013 growth forecast for the 45 developing member countries of ADB to 6.3% and cut its 2014 forecast to 6.4%. In April, ADB had predicted the region to grow 6.6% this year and 6.7% next year.
"The drop in trade and scaling back of investment are part of a more balanced growth path for PRC, and the knock-on effect of its slower pace is definitely a concern for the region. But we are also seeing more subdued activity across much of developing
," said ADB Chief Economist
The PRC - home to developing
largest economy - is likely to see its economy expand 7.7% this year and 7.5% in 2014 after growth of 7.8% in 2012. The report notes that import and export growth has slowed given weak external demand, but notes continuing robust consumer confidence. Slower growth in the PRC has subdued the outlook for the entire
region as well as, to a lesser extent, for
and other large ASEAN countries are otherwise seeing solid growth.
, meanwhile, slow progress in pushing through the reforms needed to ease business bottlenecks means growth is likely to be 5.8% this year, slower than the previously forecast 6.0%. ADB maintains its 2014 forecast of 6.5% for 2014. Elsewhere in
continues to grow strongly while other parts of the region will see softer than anticipated growth.
The report has also trimmed forecasts for
, reflecting the sluggish economic performance of
, and for the Pacific where Timor-Leste is seeing a slowdown in government spending.
Inflation pressures, meanwhile, are waning on the back of declining energy and food prices, given slower global demand for fuels and bumper grain harvests.