Asia economies facing shock from war, China slowdown and rate hikes
The Development Bank cut its 2022 growth forecast for the East Asia and Pacific (EAP) region to 5% from 5.4% and warned that growth could drops to 4% if conditions weaken further, traps another 6 million Everyone in poverty.
A higher US rate is likely to trigger capital outflows from developing economies and put pressure on their currencies, thus causing financial tightening “soon,” the World Bank said. ” and hurt growth, the World Bank said.
“Shocks specific to economic activity in China, are also likely to affect EAP countries whose trade is increasingly directed to the Chinese market,” the bank said. speak.
It added that shocks from the war in Ukraine could affect the region “most specifically” by disrupting goods supplies and increasing financial stress.
“War and sanctions have the potential to increase international food and fuel prices, hurting consumers and growth,” adding that the number of poor people in the Philippines, for example, could increase by 1.1 million if grain prices increase by 10%. five.