The Asian Development Bank says economic growth in emerging East Asia will continue to wane in 2012 as sovereign debt problems in Europe and an anaemic U.S. economy raise the risk of a deep global downturn.

The ADB said Tuesday it cut its 2012 growth forecast to 7.2 percent from 7.5 percent for 14 East Asian economies. It said in a worst-case scenario a global financial crisis East Asia would grow only 5.4 percent in 2012.

The Manila-based lender said it’s “cautiously optimistic” about the outlook but notes that global conditions have worsened since midyear.

The report said that major risks include a deep recession in both the Europe and the U.S., rising protectionism and resurgent inflation.