The Asian economy could grow at a slower pace than expected next year as the US-China trade war caused collateral damage to the region's export-dependent economies, the Asian Development Bank (ADB) said today.
The bank maintained its estimate of economic growth in the region in 2018 at 6.0% but reduced expectations for next year to 5.8% from 5.9%.
The growing risk for the outlook is on the rise, said the chief economist at the Asian Development Bank, referring to the potential impact of U.S. trade tensions on regional supply chains and the sudden risk of capital inflows if the Fed raises interest rates more quickly.
The ADB's 5.8 percent growth rate for 2019 will be the slowest in the region - from 45 countries in Asia and the Pacific - since it grew by 4.9 percent in 2001.
The United States and China imposed new tariffs on each other's goods on Monday as the world's largest economies showed no signs of decline amid a growing trade dispute expected to affect global economic growth.
China's economy is expected to grow by 6.3 percent in 2019, according to estimates by the Asian Development Bank (ADB), slower than its forecast of 6.4 percent in July and weaker than its 6.6 percent forecast for 2018.
