The latest Asian Development Outlook Supplement has trimmed the 2013 growth forecast for developing countries to 6.3 percent and cut its 2014 forecast to 6.4 percent.
In April, ADB had predicted the region to grow 6.6 percent this year and 6.7 percent next year.
“The drop in trade and scaling back of investment are part of a more balanced growth path for PRC, and the knock-on effect of its slower pace is definitely a concern for the region. But we are also seeing more subdued activity across much of developing Asia,” said ADB chief economist Changyong Rhee.
China—home to developing Asia’s largest economy—is likely to see its economy expand 7.7 percent this year and 7.5 percent in 2014 after growth of 7.8 percent in 2012. Its slower growth has subdued the outlook for the entire East Asia region and, to a lesser extent, for Southeast Asia, where the Philippines and other large ASEAN countries are otherwise seeing solid growth.
In India, growth is likely to be 5.8 percent this year, slower than the previously forecast of 6 percent. ADB maintains its 2014 forecast of 6.5 percent for 2014.
In South Asia, Sri Lanka continues to grow strongly, while other parts of the region will see softer-than-anticipated growth, ADB said in a statement.
The report has also trimmed forecasts for Central Asia, reflecting the sluggish economic performance of Kazakhstan and Georgia, and for the Pacific where Timor-Leste is seeing a slowdown in government spending.