US-China trade war is the ‘biggest threat’ to Asian economies as growth forecasts slashed
- The Asian Development Bank has cut its growth outlook for Asia, blaming sluggish demand and the trade tensions between China and the United States
- Report by chief economist Yasuyuki Sawada came a day after the World Trade Organisation reduced its global trade growth forecasts due to the trade conflict
The US-China trade war is the biggest risk to the Asian economy, with the prolonged conflict threatening to “undermine investment and growth in developing Asia”, the Asian Development Bank has said.
The bank’s chief economist Yasuyuki Sawada downgraded his growth forecasts for the region to 5.7 per cent this year and 5.6 per cent next year, down from 6.2 per cent in 2017 and 5.9 in 2018.
The Asian Development Bank (ADB) report, launched in Hong Kong on Wednesday, cited “uncertainties stemming from US fiscal policy and a possible disorderly Brexit” as issues that could act as a net drag on regional growth with Asia full of export-dependent economies that is exposed to fluctuations in global demand more than any other region.
“The largest risk we identified is still centred on the trade conflict. Prolonged negotiations are the biggest risk.”
The report was launched a day after the World Trade Organisation (WTO) also blamed the trade war for a tumble in global trade growth.
