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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.
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.