(MENAFN - Qatar News Agency) The Asian Development Bank (ADB) is significantly scaling back 2012 and 2013 growth forecasts for developing Asia, saying in a report that after years of rapid growth, the region must brace for a prolonged period of moderate expansion amidst an ongoing slump in global demand.
ADB's Chief Economist Changyong Rhee discussing the highlights of the report said "Developing Asia must adapt to a moderate growth environment, and countries will need to do more to reduce their reliance on exports, rebalance their sources of growth, and increase their productivity and efficiency."
Rhee said "These measures are critical if the region is to continue lifting its people out of poverty."
In its Asian Development Outlook 2012 Update, released on Wednesday projected the region s gross domestic product (GDP) growth to drop to 6.1% in 2012, and 6.7% in 2013, down significantly from 7.2% in 2011.
The deceleration of the region s two giants the People s Republic of China and India in tandem with the global slowdown, is tempering earlier optimism.
The report noted that the ongoing sovereign debt crisis in the euro area and looming fiscal cliff in the US could have disastrous spillovers to the rest of the world, particularly developing Asia.