Bad: Inflation threatens East Asian growth

HONG KONG (AP) — rising inflation, an economic recovery low post-tsunami woes to the Japan and the debt in Europe and the United States threaten the economic prospects for East Asia, Asian Bank of development said Thursday.The lender Manila maintained its forecasts of economic growth for 14 emerging and the Asian newly industrialized in 2011 and 2012. But he said that the region is facing risks also include more volatile financial markets and destabilizing inflows of short-term capital, also known as the "hot money.".The ADB growth forecasts were unchanged since a report in April, with Asia forecast to expand to up to 8% this year and next. But he said that the Outlook for some countries, including China could be downgraded.In the first half of 2011, the economic growth across Asia relaxed at a rate of hell as inflation soared through much of the region, driven by rising prices and the strong economic recovery. "" Quickly rising inflation may spiral price / wages that could derail the recent strong growth in the region, "said the report.The report also detailed other sources of rising prices.In many economies of East Asia, real estate prices are climbing quickly.The devastating tsunami and the nuclear disaster at the Japan in March sparked a debate on the use of nuclear energy, which could drive the price of energy boosting demand for other sources of energy, such as oil and gas.The threat of inflation has been a major concern in Asia this year. In April, the ADB warned as the soaring prices of food products by 10 per cent on average in many Asian economies could lead to more than 64 million people in poverty.The ADB economists has also fretted their venerate yet on the malaise in the United States and in Europe, which are plagued by problems of unemployment and high debt. The two are the main customers for exports to Southeast Asia.During this time, the Japanese economy, already struggling with the recession following production interruptions caused by the tsunami, must bear a strengthening yen, which adversely affect its exports by making them more expensive. "" If recovery at the Japan, the United States and the euro area is faltering, sluggish external demand could once more to disrupt exports from the region, "said the report.The ADB has maintained its forecast of growth of gross domestic product of China 9.6% this year and 9.2 per cent next year. Weak export demand and increases in rates of interest by the authorities of China aims to keep inflation under control "is expected to help growth moderate to more sustainable levels in the coming months," said the report.The ADB said that it should reduce its 2011 China's growth forecasts, but that he did not say how much.