Evergrande debt problem ‘warrants careful monitoring’ – ADB

In its latest report released on Wednesday, the Asian Development Bank (ADB) trimmed the 2021 growth forecasts for developing Asia while warning about China Evergrande’s debt problem.

Key takeaways

“Expect 7.1% growth in 2021, falling to 5.4% in 2022. The forecast in April was for 7.3% growth this year and 5.3% in 2022.”

“Most regional economies will remain below their pre-pandemic levels into 2022, and some of the losses from the crisis will be permanent.”

“The forecast for China’s growth remained at 8.1% in 2021, with growth expected to slow to 5.5% in 2022.”

“In South Asia, where outbreaks flared in the spring, the ADB expects economic growth of 8.8% this year and 7.0% next year.”

“The ADB put inflation for Asia at 2.2% in 2021 and 2.7% next year.”

Related reads

China’s another property group calls of bond trading, Evergrande’s foreign repayments loom

S&P 500 Futures swing to green on PBOC, Evergrande news ahead of Fed