The Asian Development Bank (ADB) on Thursday cut its economic growth forecast for developing Asia amid slower-than-expected growth in the United States and China, dpa reported. The Manila-based bank said the region's gross domestic product (GDP) was projected to grow by only 6.1 per cent in 2015, down from the original forecast of 6.3 per cent in its annual Asian Development Outlook published in March. In 2016, GDP was projected to expand by 6.2 per cent, down from the initial projection of 6.3 per cent, according to a supplement report to the Outlook. "With the United States contracting in the first quarter and some underperformance within Asia and the Pacific, growth forecasts for developing Asia are adjusted down," the report said. "Slower growth in China is likely to have a noticeable effect on the rest of Asia given its size and its close links with other countries in the region through regional and global value chains," ADB chief economist Shang Jin-Wei added. Full-year growth in China is now estimated at 7 per cent in 2015, down from 7.2 per cent previously after a slow first half. Growth would ease further to 6.8 per cent next year, the report said. The bank revised down its projection for inflation in the region to 2.4 per cent in 2015, from an earlier estimate of 2.6 per cent amid softness in fuel prices and subdued food costs. "Inflation is seen at 3 per cent in 2016, unchanged from the previous forecast," it added.
