Asian Development Bank sees slower growth in developing economies.

"Growth in Asia's developing economies will slow in 2008 to the weakest level in five years, but the region needs to tackle inflationary pressures before they spiral out of control, the Asian Development Bank (ADB) said Wednesday in its annual economic outlook. While growth will remain relatively robust despite the global credit crisis, inflation will rise to a decade-long high, presenting a major risk, it said. The region, which includes China, India, South Korea, Central Asia and the strong economies of Southeast Asia should register average growth of 7.6 percent in gross domestic product in 2008, the bank said. That forecast follows a rate of 8.7 percent in 2007 and is the lowest annual growth figure since 7.1 percent in 2003..." [International Herald Tribune]

"The ADB forecast growth to pick up to 7.8% next year, although with a high degree of uncertainty given the global fallout from the trouble in the U.S. mortgage sector. The lower growth projections, the bank said, are only slightly below the recent historical trend in the region.

'Developing Asia will not be immune to the global economic slowdown, nor will it be hostage to it,' the ADB said in its annual economic outlook. Just a day earlier, the World Bank lowered its growth forecast for East Asia, citing the impact of the financial turmoil in the U.S...The regional bank expects that monetary conditions in China will further tighten and the yuan will appreciate faster against the U.S. dollar. The country's fiscal policy will be prudent..." [Dow Jones International News/Factiva]