Asia's developing economies, once home to double-digit growth rates, will see momentum stall over the next two years amid a weak recovery in industrial nations and a slowdown in China, the Asian Development Bank (ADB) warned on Wednesday.
Gross domestic product (GDP) growth for developing Asia is expected at 5.7 percent in 2016 and 2017, decelerating from 5.9 percent in 2015, the bank said in its new 2016 outlook.
The region's outlook is looking increasingly dim with the U.S., euro area and Japan experiencing weak external demand and Beijing concentrating on reforms that are likely to hit its GDP, the ADB said.
Tepid external appetite for manufactured goods and low commodity prices will trim emerging Asia's current account surplus to 2.6 percent of regional GDP this year, from 2.9 percent in 2015, the ADB said.
Moreover, future interest rate hikes by the Federal Reserve and the spread of producer price deflation across Asia also pose risks, the report added.