(MENAFN- Qatar News Agency) Developing Asia's economic growth will ease in 2012 on weak global demand and faces continued threats from uncertainties in the eurozone, the Asian Development Bank said Wednesday.
The Manila-based bank said the region's aggregate gross domestic product growth was forecast to slow to 6.9 per cent in 2012, after expanding by 7.2 per cent last year.
Growth was projected to tick back up to 7.3 per cent in 2013 as private consumption provides support to domestic demand.
China, the world's second-largest economy, will lead the deceleration in the region, with its growth projected to moderate to 8.5 per cent in 2012 and 8.7 per cent in 2013, down from 9.2 per cent in 2011.
"The greatest risk to the outlook is the continued uncertainty over resolving the sovereign debt problems in the eurozone," the report said.
It noted that while the default on Greece's debt in March lowered the risk of a liquidity crunch in the short term, "calls for fiscal austerity across the eurozone will act as a drag on growth" as exports demand remains weak and trade finances constrained.
Inflation also remains a potential threat given volatility in food and fuel prices, it added.
Developing Asia must also address a widening gap between rich and poor despite decades of robust growth, because the growing inequality could undermine stability in the region, the report said.
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