ADB keeps growth forecasts for developing Asia

Reuters

Posted at Jul 19 2018 11:54 AM

A farmer carries plant seedlings at a field in Dongfeng village, Hunan province, China May 9, 2018. Ryan Woo, Reuters

MANILA -- The Asian Development Bank said Thursday developing Asia was on track to meet growth expectations for this year and 2019, but warned that rising US protectionist trade measures and countermeasures from China and others pose "a clear downside risk."

The Manila-based institution, in an update of its Asian Development Outlook, kept its 2018 and 2019 economic growth estimates for the region at 6 percent and 5.9 percent, respectively.

It also kept its growth forecasts for the Philippines unchanged at 6.8 percent this year and 6.9 percent in 2019.

The ADB made only a few small changes in the forecasts made in April. It now sees Indonesia growing 5.2 percent this year, instead of 5.3 percent, and has raised its forecast for Thailand to 4.2 percent from 4 percent.

The lender said that it factored tariffs imposed by July 15 into the latest forecasts, though it added "the risk of further ratcheting up of protectionist measures could undermine consumer and business confidence and thus developing Asia's growth prospects."