ADB Sees East Asia Growth Risk on $8 Trillion Funding Challenge

Emerging East Asian economies risk slower growth after they failed to take advantage of ample cash supply made available by global monetary authorities to build roads and ports, the Asian Development Bank said.

Funding infrastructure needs has become harder following recent turmoil in regional financial markets, and borrowing costs could rise further when the U.S. Federal Reserve starts tightening policy, the Manila-based lender said in a report today. Weakening growth momentum could accelerate capital outflows, and moves to defend Asian currencies by raising interest rates will further curb economic expansion, it said.