ADB raises Asia growth outlook, warns of trade tension risks

FILE - In this Aug. 12, 2015, file photo, workers arrange metal rods at a government road project in suburban Quezon City, north of Manila, Philippines. The Asian Development Bank said in a report Wednesday, April 11, 2018, the bank is forecasting that developing Asian economies will expand slightly faster than expected this year but warns U.S. trade tensions are a major risk to its forecast. (AP Photo/Aaron Favila, File)
FILE - In this Aug. 11, 2015, file photo, a motorcycle travels through lanes of vehicles during rush hour traffic in the financial district of Makati, south of Manila, Philippines. The Asian Development Bank said in a report Wednesday, April 11, 2018, the bank is forecasting that developing Asian economies will expand slightly faster than expected this year but warns U.S. trade tensions are a major risk to its forecast. (AP Photo/Aaron Favila, File)
FILE - In this, March 29, 2018, file photo, a container ship is docked at the Yangshan port in Shanghai. The Asian Development Bank said in a report Wednesday, April 11, 2018, the bank is forecasting that developing Asian economies will expand slightly faster than expected this year but warns U.S. trade tensions are a major risk to its forecast. (AP Photo, File)
FILE - In this Jan. 26, 2017, file photo, construction workers stand on the scaffolding around metal rods of a new pillar as they build more floors at a reclamation site in suburban Paranaque city, south of Manila, Philippines. The Asian Development Bank said in a report Wednesday, April 11, 2018, the bank is forecasting that developing Asian economies will expand slightly faster than expected this year but warns U.S. trade tensions are a major risk to its forecast. (AP Photo/Bullit Marquez, File)
In this April 10, 2018, photo, a cargo ship is docked at the Yangshan container port in Shanghai, China. The Asian Development Bank said in a report Wednesday, April 11 the bank is forecasting that developing Asian economies will expand slightly faster than expected this year but warns U.S. trade tensions are a major risk to its forecast. (Chinatopix via AP)
FILE - In this April 6, 2017, file photo, construction workers rest near a board with an artist's impression of the Central Business District outside a construction site in Beijing. The Asian Development Bank said in a report Wednesday, April 11, 2018, the bank is forecasting that developing Asian economies will expand slightly faster than expected this year but warns U.S. trade tensions are a major risk to its forecast. (AP Photo/Ng Han Guan, File)

HONG KONG — Developing Asian economies will expand at a slightly faster pace this year than earlier forecast, but trade tensions with the U.S. pose a major risk, the Asian Development Bank said Wednesday in its latest regional update.

The Manila, Philippines-based lender said it expects the region to expand at a 6 percent clip in 2018, slightly above its previous forecast, after recording 6.1 percent growth last year.

For 2019, it predicts growth will ease to 5.9 percent.

The bank said robust exports and strong domestic consumer demand are supporting activity across the 45 economies it covers in its annual report.

Risks to the growth outlook are driven mainly by "fears of escalating trade tensions," it said, referring to China-U.S. trade tensions that have threatened to escalate into an all-out trade war.

The report did not mention President Donald Trump but it was clearly referring to his trade policies, which have involved threatening China with higher tariffs on tens of billions of dollars of exports in a dispute that centers on complaints from foreign companies that say they're forced to hand over their technology. Beijing has responded with its own proposed list of tariffs of a similar amount.

"Recent U.S. tariffs on select products have not yet dented trade, but further actions by the U.S. and counteractions against them could undermine business and consumer confidence in Asia and the Pacific," the report said.

Growth in China's economy, the world's second biggest, is set to cool to 6.6 percent in 2018 and 6.4 percent in 2019 after logging 6.9 percent growth last year, it said.

You may also interested in

Global stocks lower, except for Tokyo, on Yellen speech

Aug 29, 2016

Most global stocks slipped Monday on remarks from the U.S. Federal Reserve late last week that the case has strengthened for raising interest rates, but the Tokyo market was an exception and gained on prospects for a strong dollar

Global stocks rise as investors weigh future of US rates

Aug 30, 2016

Global stock markets mostly rose on Tuesday as investors weighed the possibility and timing of another U.S. interest rate increase this year

Asian markets waver on mixed signals from China, Japan data

Sep 1, 2016

Asian markets were mixed Thursday as China and Japan, the region's two biggest economies, reported contrasting data

Broaden News
Search

Manage The Numbers is the world’s fastest-growing finance news website, featuring the latest money and market news, along with in-depth analysis so you can make the best decision.

Contact us: sales@managethenumbers.com

Subscribe to our newsletter!

Name

Email