The Asian Development Bank recently trimmed regional growth expectations, as it sees Developing Asia facing “intensified” risks from China’s troubled property sector and high interest rates around the world.
Developing Asia refers to the multilateral lender’s 46 emerging member economies, stretching from Kazakhstan in Central Asia to the Cook Islands in the Pacific.
Gross domestic product is forecast to expand by 4.7 percent this year, the Manila-based lender said, slightly lower than its April estimate of 4.8 percent, but faster than the 4.3 percent growth recorded last year.
“Risks to the outlook have intensified,” the bank said in its latest update of forecasts for this year and next, noting weaknesses in China’s property sector could “hold back regional growth.”
Other challenges included high interest rates and threats to food security from the El Niño weather phenomenon and export restrictions imposed by some countries.
Inflation is also expected to drop to 3.6 percent this year, from 4.4 percent last year, the ADB said, pointing to the slowdown in China.
There was a burst of consumer exuberance after China, the world’s second-largest economy, lifted its strict zero-COVID policies late last year. However, weak consumption, a crisis in the massive property sector, and soft demand for China’s exports has complicated the recovery.
With the ADB tempering growth expectations and foreseeing intensified risks for the year, we may have to brace ourselves for some more struggles as our economy tries to recover from the impact of the COVID-19 pandemic and cope with the crises from Russia’s war in Ukraine, the rising cost of living, El Niño related food supply worries, and the ever present climate risks that come with the geography and location of our country.
The challenges that we are still expected to face will test the quality of the nation’s leadership, and at this point, Filipinos can only hope that we have chosen the right leaders who have the qualifications, experience and empathy to lead our nation through the next few months and years.*
