|ADB DOWNGRADES EAST ASIA GROWTH FORECASTS FOR 2012|
Aruba, December 7, 2011 - The Asian Development Bank has again downgraded next year's growth forecasts for emerging East Asia, warning of the impact of the European debt crisis. It now expects 14 economies in the region to grow by 7.2% in 2012, instead of the 7.5% it estimated in September.
The ADB has maintained its forecast for 2011 at 7.5%.
"The first round effect will be on countries which are relatively export-oriented," said Iwan Azis, the head of the Asian Development Bank's Office of Regional Economic Integration.
The ADB has also warned of other downside risks such as protectionism, destabilising capital flows and inflation. However it said inflation "appears to have peaked" in most economies and it was not predicting a recession in the region.
Read more/ Source: http://www.bbc.co.uk/news/business-16027077