Asian Development Bank: Asian Economic Growth Will Suffer From US-China Trade War
Trade war between the US and China could significantly affect economic growth not only of the world’s two largest economies, but inflict damage on the Asian export-reliant economies. The Asian Development Bank (ADB) projects, that economic growth of the 45 countries in the Asia-Pacific will be 5.8% in 2019. The indicator would mark the slowest growth for the region since 2001, when it expanded 4.9%.
The Manila-based institution kept its 2018 economic growth estimate for the Asian region at 6.0% for this year and next year's forecast was cut to 5.8% from 5.9%.
Still, the ADB's latest forecasts did not take reflect fresh tariffs that the US and China imposed on each other's goods this week. ADB Chief Economist Yasuyuki Sawada said, that the additional duties would not significantly change ADB's growth forecasts, but the "escalating" trade conflict must be closely monitored.
China's economy is expected to grow 6.3% in 2019, slower than its 6.4% forecast in July and weaker than its 6.6% growth estimate for 2018. For Southeast Asia, economic growth is projected to slow to 5.1% this year from the July forecast of 5.2%.