10/02/2013, 00.00
ASIA
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The ADB reduces growth prospects of emerging Asian countries

The region (excluding Japan ) is expected to grow by 6 % in 2013 , 6.2 in 2014. In July, the forecast was 6.2 in 2013 and 6.4 in 2014. Knock-on effects of slowdown in China and India. Growth difficult even for Thailand, Indonesia and Malaysia . Major reforms are needed for long-term growth

Manila ( AsiaNews / Agencies) - A slowdown in China and India , in addition to the difficulties of the United States and Europe have led the Asian Development Bank (ADB ) to scale down the growth of emerging Asian countries ( all but the Japan ) . The organization based in the Philippines, now forecasts growth at 6% in 2013 and 6.2 in 2014. In July, the ADB had forecast growth of 6.3 in 2013 and 6.4 in 2014.

Internal problems in Asian societies are also weighing on growth prospects , as well as a lowering of exports to the U.S. and Europe . In addition the ADB foresees a reduction in the subsidies that the Federal Reserve has given in recent years to the American economy (Quantitative easing, QE ) .

In the report released yesterday , the ADB said that this year China , the second world economy could grow by 7.6 % , given that its government has struggled to stop a credit bubble and uncontrolled loans. India could expand up to 4.7% , having to fight with weak infrastructure and a reduction in investment.

The bank also warned the countries of Southeast Asia, with weak forecasts for Thailand, Indonesia and Malaysia, due to a weakening of exports.

For the ADB , the slow growth "highlights the need to focus on reforms that needed in areas such as foreign direct investment , infrastructure development , and the fiscal consolidation as well as social welfare programs" in the region. These reforms - according to the ADB - are essential for long-term growth .

 

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