Beijing (TDI): The Asian Development Bank said on Wednesday that economic development in developing Asia and the Pacific remains steady, but changes to US trade, fiscal and immigration policies under the upcoming Trump administration could dent growth and boost inflation in developing Asia.
In its new Asian Development Outlook, ADB lowered the growth prediction for developing Asia to 4.9% for this year and 4.8% for 2025.
Notably, the bank maintained its previous growth forecasts for China at 4.8% for 2024 and 4.5% for 2025.
The ADB’s report comes as some global organizations have been warning about the adverse impact of potential policy changes in Washington, including imposing additional tariffs on the global economy.
On Wednesday, a report on the Oxford Economics also noted that the new US administration’s tariffs are expected to exacerbate the slowbalisation globally.
In contrast to uncertainty from Washington, China’s positive role for the global economy has been underlined by major international economic organizations.
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During a meeting with China’s top leader on Tuesday, the heads of major global economic organizations, including Managing Director of the International Monetary Fund Kristalina Georgieva, President of the New Development Bank Dilma Rousseff, President of the World Bank Group Ajay Banga and Director-General of the World Trade Organization (WTO) Ngozi Okonjo-Iweala, lauded China’s remarkable achievements.
Amid international economic challenges and the rise of protectionism and unilateralism, nations around the globe are looking to Beijing with hope and belief that it will remain a key driver of global economic growth, they said, Xinhua News Agency reported.
In addition, a report from KPMG China on Tuesday noted hat China’s huge market potential and its important position in the international supply chain still attract a large number of foreign investors to maintain and increase their presence in the Chinese market.
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As China’s domestic demand continues to improve, confidence of foreign investors in the Chinese market is also likely to improve, the report said, noting that Beijing will likely further advance opening-up policies in 2025.
