The world could easily slide into a global recession, the Asian Development Bank warned on Friday, adding that growth in Asian economies will slow further next year amid weaker demand for their exports.
Recent dismal trade, employment and manufacturing data all point to a shrinking international economy and falling consumer demand for products made in Asia, said ADB Managing Director General Rajat Nag. "The global slowdown could easily turn into a global recession," Nag said in a speech in Singapore. "Growth in developing Asia will likely slow further in 2009." Governments across the region have slashed growth forecasts this year as a credit crisis that began last year in the US spreads across the globe, battering investor and consumer confidence. "Asia's economic and financial systems will likely come under increased pressure," Nag said. "Asia's export-dependent economies also face a sharp slowdown as global demand weakens."