Asian Development Bank Downgrades Growth Forecast

Manila, Philippines (AHN) - The Asian Development Bank on Tuesday warned of further slowdown in Asian economies this year and warns the U.S. financial crisis that is hurting the global markets will fan inflation.

The Manila-based lender, in its 2008 Development Outlook report said the financial crisis had "exploded the myth of uncoupling" and has caused Asian economies to slow down because of its reliance on industrial countries.

The report was prepared before the troubles in the U.S. markets particularly the bankruptcy of Lehman Brothers and Merrill Lynch over the weekend.

ADB predicts inflation to reach 7.8 percent in Asia in 2008 up from the April forecast of 5.1 percent, and 6.0 percent in 2009.