China, India Growth Forecasts Cut to Below 6% by ADB
The Asian Development Bank cut its economic growth forecasts for two of the region’s biggest economies to below 6%, dimming prospects across the continent.
China’s economy is seen expanding 6.1% this year and 5.8% in 2020, down from a September projection of 6.2% and 6% respectively. India’s growth forecast for the fiscal year through March 2020 was slashed to 5.1% from 6.5% previously, and the year ending in March 2021 should see 6.5% growth versus a prior forecast for 7.2%.
ADB Cuts Developing Asia 2019 GDP Forecast to 5.2%; 2020 5.2%
“While growth rates are still solid in developing Asia, persistent trade tensions have taken a toll on the region and are still the biggest risk to the longer-term economic outlook,” ADB Chief Economist Yasuyuki Sawada said in a statement. “Domestic investment is also weakening in many countries, as business sentiment has declined.”
China’s growth downgrade is largely due to the trade war and weaker domestic demand as surging pork prices hit consumer wallets, the ADB said. In India, a credit crunch and weak consumption is weighing on the economy.
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