Evergrande debt problem ‘warrants careful monitoring’ – ADB

Dhwani Mehta FXStreet

In its latest report released on Wednesday, the Asian Development Bank (ADB) trimmed the 2021 growth forecasts for developing Asia while warning about China Evergrande’s debt problem.

Key takeaways

“Expect 7.1% growth in 2021, falling to 5.4% in 2022. The forecast in April was for 7.3% growth this year and 5.3% in 2022.”

“Most regional economies will remain below their pre-pandemic levels into 2022, and some of the losses from the crisis will be permanent.”

“The forecast for China's growth remained at 8.1% in 2021, with growth expected to slow to 5.5% in 2022.”

“In South Asia, where outbreaks flared in the spring, the ADB expects economic growth of 8.8% this year and 7.0% next year.”

“The ADB put inflation for Asia at 2.2% in 2021 and 2.7% next year.”

S&P 500 Futures swing to green on PBOC, Evergrande news ahead of Fed

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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