Rising inflation to hit Asia’s growth
The Asian Development Bank (ADB) has said rising inflation is impacting negatively on growth in emerging East Asian economies.
The Bank warned that inflation could rise even further due to higher oil prices.
In its semi-annual Asia Economic Report, the ADB said annual growth in the region’s ten largest economies slowed to 8.1%, in the first quarter of 2011, down from 8.4% in the previous quarter.
Inflationary pressures are rife throughout Asia currently on the back of higher food and fuel prices.
The ADB defines emerging East Asia as the 10 members of the Association of Southeast Asian Nations—Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam—along with China, Hong Kong, South Korea and Taiwan.
China, which is currently the world’s second largest economy, experienced a slowdown in growth to 9.5% in the three months to the end of June on an annual basis – down from 9.7% in the previous quarter.
In light of higher inflation, the ADB said it was likely to lower its forecasts for growth in the emerging East Asian economies for the 2011 year.