- Growth forecasts for developing Asia’s economies are looking brighter, with 4.8% growth projection this year and next year compared to the 4.2% growth in 2022.
- Growth in developing Asia remains resilient, and the outlook is improving. The region’s outlook has been boosted in large part by the decision of the People’s Republic of China to end its zero-COVID policy.
- Inflation in developing Asia is also expected to moderate and return to its pre-pandemic levels.
Growth forecasts for developing Asia’s economies are looking brighter, with 4.8% growth projection this year and next year compared to the 4.2% growth in 2022. Inflation in developing Asia is also expected to moderate and return to its pre-pandemic levels.
Transcript
Developing Asia’s Economic Outlook: April 2023
Growth in developing Asia remains resilient, and the outlook is improving.
The region’s outlook has been boosted in large part by the decision of the People’s Republic of China to end its zero-COVID policy.
Consumption and investment continue to grow as economic reopening continues throughout the region.
As restrictions are eased, many people are starting to travel—for work and leisure.
This is boosting tourism revenue and remittances.
The region’s reopening helps offset several ongoing challenges.
The Russian invasion of Ukraine will keep food and energy prices elevated.
Global financial conditions may remain tight, slowing external demand and raising financial stability risks.
According to ADB’s latest forecast, economies in developing Asia will grow 4.8% this year and next year.
This is up from 4.2% growth in 2022.
With reopening from COVID-19 in full swing, the People’s Republic of China is projected to grow by 5.0% in 2023 and 4.5% in 2024.
India, South Asia’s largest economy, is projected to grow 6.4% this year and 6.7% next year, amid healthy domestic demand.
Inflation in developing Asia is forecast to slow to 4.2% this year and 3.3% next year, compared with 4.4% in 2022.
To sustain the region’s recovery, it’s important that policy makers work together to support trade openness and lower barriers to investment and productivity.
The region must also be vigilant against financial risks and strengthen policies to safeguard financial stability.
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