Emerging Asia growth forecast cut

The Asian Development Bank is cutting its economic growth forecast for developing Asia because of weakness in China and India and jitters over plans to scale back US stimulus.

The bank said in a report today that it expects the region’s emerging economies to grow by 6% this year, down from the 6.6% predicted in April.

It cut its forecast for next year to 6.2% from 6.7%.

The Manila-based lender said growth in China, the world’s second biggest economy, is easing after authorities tried to rein in credit expansion, part of a wider effort to rejuvenate the economy.

In India, long delayed structural reforms are crimping industry and investment.

Developing Asia includes 45 developing or newly industrialised countries in Asia and the Pacific, but excludes Japan.