ADB chief warns of 'big downturn' following China's economic slowdown, U.S. monetary policy change

The Asian Development Bank will closely monitor how China's economic slowdown will affect the economies in the region, ADB President Takehiko Nakao has said.

Nakao also added that the economies in the region could also be affected after U.S. central bank's possible scaling down of its asset purchases.

The former vice finance minister for international affairs, told reporters at the Japan National Press Club in Tokyo, that Chinese exports are clearly slowing down and they may not maintain their previous momentum.

According to the Japan Times, he said that if China's economy languishes, that would certainly affect some neighboring countries, including South Korea, whose economy heavily relies on exports.

Nakao, who became president of the 67-member Manila-based ADB in late April, said that the world's second-largest economy is unlikely to face a 'big downturn' in the short term.

He said that China is trying to take steps to achieve more balanced economic growth that is not too dependent on the real estate sector and capital spending.

According to the report, on Tuesday, the ADB downgraded its growth forecast for China's economy.

It is now forecast to expand 7.7 percent in 2013 and 7.5 percent in 2014, compared with the ADB's previously forecast growth of 8.2 percent in 2013 and 8 percent in 2014, the report added.