Manila: Slower growth in China and India and uncertainty over the US Federal Reserve's stimulus programme is hurting Asia's economic momentum, the Asian Development Bank (ADB) said, as it cut its forecast for the region.
In an update to its annual Asian Development Outlook published in April, the bank tipped regional gross domestic product to grow six per cent this year, compared to its earlier forecast of 6.6 per cent. Growth in 2012 was 6.1 per cent.
It also trimmed its 2014 estimate to 6.2 per cent from the 6.7 per cent previously stated.
Asian economies have seen a marked slowdown this year owing to a troubled first six months in China — a key driver of regional growth — while India has been hit by political paralysis, rising inflation and a slumping rupee.
On top of this are worries about the Fed's massive bond-buying programme, which saw a huge investment splurge in emerging economies when unveiled late last year but which the central bank is now considering winding down.
The ADB cut its 2013 forecasts for China to 7.6 per cent, well down from its April estimate of 8.2 per cent, blaming weaker domestic demand.