The Asian Development Bank says the East Asian region will grow at a more moderate pace this year and next due to rising inflation and sovereign debt woes in the United States and Europe.

In a report issued Wednesday, the Manila-based lender forecasts average growth for the emerging economies of East Asia at 7.9 percent in 2011 and 7.7 percent in 2012. The region enjoyed strong growth in 2010 as it rebounded from the global economic slowdown.

The ADB says East Asia is at risk from rising inflation, which could lead to higher wages and prices that could derail growth. The region could also suffer if Japan's recovery from its March earthquake and tsunami is more sluggish than expected.

The bank's semi-annual Asia Economic Monitor assesses the outlook of the 10-member Association of Southeast Asian Nations, plus China, Hong Kong, South Korea and Taiwan.

The report says the economies of China, Hong Kong, South Korea and Taiwan will experience more sustainable levels of growth in 2011 and 2012. The middle income economies of Malaysia, the Philippines and Thailand should see their growth taper off due to diminished export demand and tighter monetary policy.