Asia’s Developing Nations to Grow Faster than China’s for First Time in 30 Years, ADB Says

Asia’s developing economies are set to grow faster than China this year, according to the Asian Development Bank on Wednesday, as Beijing continues to enforce its strict zero-Covid policy.

The Asian Development Bank now forecasts 4.3% growth in developing Asian economies in 2022 and 4.9% growth in 2023; however, excluding China, the group is expected to grow by 5.3% in 2022. In China, the bank projects 3.3% growth in 2022.

This will be the first time in over three decades that the rest of developing Asia will expand faster than China, the latest report by the Manila-based lender said.

“The last time was in 1990, when (China’s) growth slowed to 3.9% while GDP in the rest of the region expanded by 6.9%,” it said.

Both of these figures represent further reductions from previous projections; for example, its growth forecast for China was reduced from 5% to 4% in July. The Asian Development Bank said that was because of sporadic lockdowns caused by the country’s zero-Covid policy, problems in the property sector, and slower economic activity due to decreased external demand.