The ADB trimmed its 2023 growth outlook for developing Asia — which covers 46 regional members of the bank — to 4.6% from 4.9%. The region will likely end the current year with a 4.2% expansion, slightly lower than the 4.3% forecast in September.

“Three main headwinds continue to hamper recovery in developing Asia: recurrent lockdowns in the People’s Republic of China, the Russian invasion of Ukraine, and slowing global growth,” the bank said in an update to its Asian Development Outlook publication.

The latest downgrades mark the third time this year the ADB has cut its growth estimates for the region, which is also under pressure from elevated inflation partly due to the war and rising interest rates.

The ADB marginally reduced its regional inflation forecast for this year to 4.4% from 4.5%, but raised its projection for price increases next year to 4.2% from 4%.

The ADB said the forecasts were based on information available as of Nov 30, a week before China began easing its zero-Covid restrictions, which had sparked protests.

China’s growth forecast for next year has been trimmed to 4.3% from 4.5% amid a slowdown in the US and Europe, the ADB said.

The outlook for India, the region’s second-largest economy, after China, is unchanged at 7.2%.

The ADB upped Southeast Asia’s growth forecast for this year to 5.5% from 5.1% on stronger-than-expected domestic consumption.

But the region is headed for a slowdown next year with 4.7% growth, from 5.0% in the previous forecast.

“Consumer and business confidence are likely to be affected by high inflation and rising interest rates, while government spending may be curtailed under constrained public finances,” the bank said.

Indonesia, Southeast Asia’s largest economy, is expected to grow 4.8% next year, down from the 5% forecast in September.

Among the sharpest downgrades, the ADB cut Malaysia’s growth outlook to 4.3% from 4.7% on subdued external conditions and slashed its forecast for Vietnam to 6.3% from 6.7% on inflationary pressures.