Trade war poses risks for growth in Asia, says ADB

MANILA – Asia's growth prospects could suffer if trade disputes between the United States and China continue to worsen, said the Asian Development Bank in a new report [19659002]. forecasts for developing Asia at 6% this year and 5.9% in 2019, indicating that most economies in the region are on track to meet expectations. Developing Asia covers 45 of the 67 member economies of the AfDB, which also include countries from Europe and North America.

Tariffs imposed before July 15th have been taken into account, but other actions could harm the region. The ADB said. On July 6, the United States imposed a $ 34 billion tariff on imports from China and the government responded accordingly.

"The risk of an increase in protectionist measures could undermine the confidence of consumers and businesses. China, the region 's largest economy, is expected to grow further by 6.6 percent in 2018 and 6.4 percent next year. China grew 6.8% in the first half of 2018, driven by consumer spending and strong investments in real estate and manufacturing. However, the risks of trade conflict and investment with the United States could hold back the country's growth prospects for the remainder of the year 2018.

India is expected to further grow by 7 , 3% this year before accelerating to 7.6% in 2019, since reforms of the banking system should boost private investment and that the benefits of the tax on goods and services begin to be felt . Rising oil prices, however, pose a negative risk to India's growth. growth prospects also remain at 5.2% this year and the next. Indonesia is expected to grow to 5.2%, up from 5.3% in April, as export growth is expected to remain moderate.

Thailand's growth forecast was raised to 4.2% in 2018 compared with 4% previously, due to widespread expansion in the first quarter, consumption, investment and exports are developing all.