MANILA -- The Asian Development Bank said on Thursday developing Asia was on track to meet the lender's growth expectations for this year and next, even as trade tensions between the United States and China keep casting a shadow over the global economy.
Developing Asia, a group of 45 countries in the Asia-Pacific region, is still expected to grow 5.7 percent this year and 5.6 percent next year, the ADB said in a supplement to its Asian Development Outlook report issued in April.
The ADB downgraded its growth forecast for the Philippines this year to 6.2 percent from 6.4 percent. It kept its 2020 forecast unchanged at 6.4 percent.
"Even as the trade conflict continues, the region is set to maintain strong but moderating growth," said ADB Chief Economist Yasuyuki Sawada. "However, until the world's two largest economies reach agreement, uncertainty will continue to weigh on the regional outlook."
The ADB also kept its 6.3 percent and 6.1 percent growth projections for China for 2019 and 2020, even after growth in the world's second largest economy slowed to 6.2 percent in the second quarter, saying policy support should offset softening growth in domestic and external demand.
The lender cut India's growth forecast to 7 percent in 2019 and
7.2 percent in 2020, from 7.2 percent and 7.3 percent, respectively, seen in April.
Citing higher oil prices, the ADB raised its average inflation forecast for developing Asia to 2.6 percent for 2019 and 2020 from 2.5 percent for both years.
-- with ABS-CBN News