The ADB reduces growth prospects of emerging Asian countries
Manila ( AsiaNews
/ Agencies) - A slowdown in China and India , in addition to the difficulties
of the United States and Europe have led the Asian Development Bank (ADB ) to
scale down the growth of emerging Asian countries ( all but the Japan ) . The
organization based in the Philippines, now forecasts growth at 6% in 2013 and
6.2 in 2014. In
July, the ADB had forecast growth of 6.3 in 2013 and 6.4 in 2014.
Internal
problems in Asian societies are also weighing on growth prospects , as well as
a lowering of exports to the U.S. and Europe . In
addition the ADB foresees a reduction in the subsidies that the Federal Reserve
has given in recent years to the American economy (Quantitative easing, QE ) .
In
the report released yesterday , the ADB said that this year China , the second
world economy could grow by 7.6 % , given that its government has struggled to
stop a credit bubble and uncontrolled loans. India
could expand up to 4.7% , having to fight with weak infrastructure and a
reduction in investment.
The
bank also warned the countries of Southeast Asia, with weak forecasts for
Thailand, Indonesia and Malaysia, due to a weakening of exports.
For
the ADB , the slow growth "highlights the need to focus on reforms that needed
in areas such as foreign direct investment , infrastructure development , and
the fiscal consolidation as well as social welfare programs" in the
region. These
reforms - according to the ADB - are essential for long-term growth .
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07/12/2012
