Asia faces three big economic shocks: War in Ukraine, China and the Fed

The World Bank said on Tuesday that countries in Asia may have to deal with three major economic shocks this year — the war in Ukraine, a sharp slowdown in China, and rate hikes from the US Federal Reserve.

The development bank cut its 2022 growth forecast for East Asia and the Pacific (EAP) region to 5% from 5.4%, and warned that growth could slump to 4% if conditions weaken further, trapping 6 million more people in poverty.

It also lowered China's growth forecast, estimating that the world's second largest economy will now grow at just 5% this year, sharply down on last year's 8.1%. That's also lower than China's official target of about 5.5%.