ADB predicts slowed growth in Asia for 2008
The Asian Development Bank on Tuesday lowered growth projections for Asia as inflation and global economic uncertainty take their toll.
The continent is expected to see economic growth of 7.5 percent for 2008, after it grew 9 percent in 2007, largely a result of inflation climbing from 4.3 percent last year to 7.8 percent this year.
“Uncoupling is a myth,' wire reports quoted ADB chief economist Ifzal Ali as saying in reference to the theory that Asian economies have become less dependent on the North American and Europe to drive growth. “The region still depends on industrial countries to fuel its growth. If the global slowdown extends beyond 2009, the repercussions for the region could be severe.”
In China growth projections were lowered as well, though the Asian powerhouse is still expected to grow 10 percent this year after growing nearly 12 percent in 2007. More importantly, a slowing of growth in China could help alleviate the pressure of intense inflation in the country.