Rising trade tensions are clouding growth prospects in developing Asia, which is expected to grow more slowly this year and next, the Asian development bank said on Tuesday.
The Asian development bank said in its latest Asian development outlook report that the region, which includes 45 asia-pacific countries and regions, may grow 5.4 percent this year, down from its July forecast of 5.7 percent, and 5.5 percent next year, down from its July forecast of 5.6 percent.
The region's economy grew 5.9 per cent last year.
In addition to weakening trade momentum, the adb sees falling investment as a risk to the region's growth prospects, the report said.
By region, South Asia will remain the fastest-growing region in the asia-pacific region, despite the adb cutting its growth prospects for 2019 to 6.2 per cent from 6.6 per cent. The adb also cut India's growth outlook for 2019 to 6.5 per cent from 7.0 per cent, leaving it at 7.2 per cent next year.
Southeast Asia is also expected to end 2019 on a weak note, with growth expected to slow to 4.5 percent from the previous estimate of 4.8 percent, down from 5.1 percent last year. Growth next year is expected to accelerate to 4.7 percent, still below July's forecast of 4.9 percent.
The adb said developing Asian economies would have to cope with slightly higher prices because of rising food costs, the report said. The adb raised the region's inflation rate to 2.7 per cent in 2019 and 2020 from its previous forecast of 2.6 per cent.