China’s growth forecast for 2022 was reduced to 3.3 per cent from 5 per cent, as Beijing pursues a zero-COVID strategy that has devastated the world’s second-largest economy.
Chinese officials are under pressure to curb even the smallest virus outbreaks swiftly, ahead of a key political meeting in October where President Xi Jinping is expected to secure an unprecedented third term.
Officials have imposed targeted lockdowns and travel restrictions, disrupting businesses and forcing millions of people to stay home.
Park said the slowdown was “weighing heavily” on the region’s projections.
Excluding China from the overall forecast, the rest of developing Asia will grow 5.3 percent.
“For the first time in more than three decades, the rest of developing Asia will grow faster than (China),” the ADB noted.
The bank also raised its inflation forecast to 4.5 per cent from 3.7 per cent, as Russia’s invasion of Ukraine and supply chain disruptions drive up food and energy prices.
While monetary policymakers in the region have hiked interest rates, some central banks may need to do more to tame inflation and prevent capital outflows, it said.