Analysts at the Asian Development Bank (ADB) have voiced their concerns about the economic outlook for the Asia-Pacific region, projecting a notable decline by the year-end. According to their revised forecast, the region's economic growth rate will decelerate to 4.7% this year. The key negative factors highlighted in their report include persistent uncertainty in China’s real estate sector and a systematic tightening of monetary policy by local central banks. Additionally, a decrease in global demand, which has been weighing on the Asia-Pacific region for most of the year, especially from January to June, is expected to curtail the export potential of Asian countries in the latter half of the year. This poses a particular threat to the local manufacturing industry, experts warned. The downward revision to the growth forecast also reflects ongoing high inflation and weather-related developments, such as El Nino, which has significantly driven up food prices. For instance, the cost of rice, a staple food of the region, reached a 12-year high in early August, explained Albert Park, Chief Economist at the Asian Development Bank.
