Growth slows, Asia faces inflation shock: ADB

Written by Reuters | Madrid, April 30: | Updated: Apr 30 2008, 20:37pm hrs
Asia's developing economies, the fastest-expanding in the world, will face the highest inflation in a decade in 2008 as their growth slows to a five- year low, the Asian Development Bank (ADB) said on Wednesday.

Soaring food and fuel prices will push average inflation to 5.1 percent across the region in 2008, ADB Managing Director Rajat Nag said ahead of the bank's annual board meeting in Madrid next week.

"This is already a grave problem for the poor, about a billion people in the region are seriously affected," said Nag who confirmed forecasts made by the bank on April 2.

The ADB expects growth in Asian developing economies to slow to 7.6 percent in 2008, down from 8.7 percent last year, due to the global credit crisis. It sees 7.8 percent expansion in 2009.