HONG KONG - China's economy is expected to grow 8.8 percent in 2012, according to the latest Asia Economic Monitor, issued by the Asian Development Bank (ADB) on Tuesday.
The semi-annual report released Tuesday assessed the 10 ASEAN economies as well as those of Chinese mainland, China's Hong Kong, the Republic of Korea, and Chinese Taipei.
Among them, Chinese mainland growth is expected to remain the highest in the region, expected to grow 8.8 percent in 2012, 0.3 percentage points lower than the forecast in September. China's Hong Kong's growth forecast was reduced from 4.7 percent to 4.0 percent in 2012. The economic crisis in the United States and Europe will make Chinese exports slow down, the report said.
Economic growth in emerging East Asia will continue to moderate into 2012 as growing sovereign debt problems in Europe and an anemic US economy raise the spectra of a deep global economic downturn, the ADB said.
The ADB cut its forecast for the region's growth in 2012 to 7.2 percent from the 7.5 percent forecast in the September Asian Development Outlook 2011 Update. Growth is still forecast at 7.5 percent for this year.
In the event that both the eurozone and the US economies contract sharply, the impact on emerging East Asia would be serious yet manageable, said the Asia Economic Monitor.
"The turmoil emanating from Europe poses a growing danger to trade and finance within emerging East Asia, so the region's policymakers must be prepared to act promptly, decisively and collectively to counter what could be an extended global economic slowdown," said Iwan J. Azis, head of ADB's Office of Regional Economic Integration, which produced the report.
The report forecast the eurozone economy would expand 0.5 percent in 2012 with the US economy growing by 2.1 percent. For 2011, ADB is still forecasting growth of 1.7 percent and 1.6 percent for the two economies respectively.
ADB, established in 1966, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth and regional integration. Headquartered in Manila, it is owned by 67 members.
