INSUBCONTINENT EXCLUSIVE:
The ADB mentioned liquidity strains on India's non-banking finance companies and slow job growthManila: The Asian Development Bank (ADB)
said on Wednesday it has lowered its growth forecasts for developing Asia this year and the next, as a weaker outlook for China and India
largest economy - for fiscal years 2019 and 2020 to 5.1 per cent and 6.5 per cent, from its September estimates of 6.5 per cent and 7.2 per
cent, due to liquidity strains on its non-banking finance companies and slow job growth.The bank trimmed its growth forecast for developing
Asia to 5.2 per cent in 2019 and 2020, the ADB said in an updated annual outlook report, from 5.4 per cent and 5.5 per cent previously.It
cut its growth estimates for China for this year and the next to 6.1 per cent and 5.8 per cent, respectively, from the 6.2 per cent and 6.0
per cent forecasts announced in September, on the US-China trade tensions and as higher prices of pork cut into consumer spending."While
growth rates are still solid in developing Asia, persistent trade tensions have taken a toll on the region and are still the biggest risk to
the longer-term economic outlook", ADB Chief Economist Yasuyuki Sawada said."Inflation, on the other hand, is ticking up on the back of
higher food prices, as African swine fever has raised pork prices significantly," Mr Sawada added.China's third-quarter economic growth
slowed more than expected to 6 per cent year-on-year, marking its weakest pace in almost three decades, and at the bottom end of the
government's full-year target range of between 6.0 per cent and 6.5 per cent.Southeast Asia's growth this year is expected to be
slightly lower than previously expected, as trade reliant economies like Singapore and Thailand are hit hard by the trade war and broader
global slowdown.Developing Asia faces rising food costs, with 2019 and 2020 inflation seen at 2.8 per cent in 2019 and 3.1 per cent in 2020,
up from the lender's previous estimate of 2.7 per cent for both the years.
