(23 September 2015 – Philippines) Growth forecasts for Asia's developing economies has been eased by the Asian Development Bank (ADB) following slowing growth in China and India, the region’s two biggest economies,
The revised growth forecasts for the region sit at 5.8 percent this year and six percent in 2016, down from a 6.3 percent March forecast for both years.
ADB said China's slowing growth would affect demand in Asian economies. It expects the world's second largest economy to grow by 6.8 percent this year, below the government's forecast of seven percent.
China's economy grew by 7.3 percent last year and the ADB expects its growth to slow even more next year to 6.7 percent.
According to the Philippines-based bank, slowing growth in India, the other Asian powerhouse will heavily impact the region.
The bank expects growth in the sub-continent country to slip to 7.4 percent, down from 7.8 percent earlier this year, due to weaker external demand and slower reforms.
“To counter the impacts of a US rate rise, monetary policy authorities in developing Asia will need to find a balance between stabilising the financial sector and stimulating domestic demand,” the report said.
Both countries have lowered interest rates multiple times this year, among other policy measures, in an attempt to boost lending and lift consumer demand.