Daily Management Review

Asian Development Bank cuts Chinese GDP growth forecast


The Asian Development Bank (ADB) downgraded its forecast for this year's GDP growth in Asia, particularly China.

faungg's photos
faungg's photos
ADB expected that the Chinese economy would expand by 5% in 2022, but the forecast has since been lowered to 4%.

According to ADB, this year's growth for the entire Asian economy would be 4.6 percent, down from the earlier projection of 5.2 percent.

According to ADB analysts, the first half of the year's tough anti-subsidy measures were to blame for the suspension of industrial production in numerous important cities as well as decreased consumer activity.

ADB also points out that because many Chinese developers are still struggling with debt, the residential real estate market in China is still having issues.

Rising inflation and heightened geopolitical uncertainty as a result of the military situation in Ukraine are two external variables that the ADB names as slowing down the economies of the PRC and all of Asia.

source: reuters.com