The region’s economy will grow 4.2% this year and 4.6% next year, ADB said in a regular supplement to the Asian Development Outlook (ADO) 2022, released on Wednesday. ADB estimated in September that the economy would grow 4.3% in 2022 and 4.9% in 2023.

Monetary policy tightening by central banks globally, the conflict between Russia and Ukraine, and recurring lockdowns in China are slowing down developing Asia’s recovery from the COVID-19 pandemic. 

Even with the downgraded forecasts, developing Asia will still do better than other regions, in terms of both growth and inflation. In its September report, ADB revised its inflation forecast for Asia downward from 4.5% to 4.4%, but raised its forecast for 2023 from 4% to 4.2%.