- Economic growth in developing Asia continues to be resilient. ADB forecasts 4.9% growth for the region this year and next year.
- Growth in developing Asia is being driven by robust domestic demand, improving semiconductor exports, and a continued recovery in tourism.
- Inflation in developing Asia is expected to decline to 3.2% this year and 3.0% next year, as interest rate hiking cycles have peaked.
Economic growth in developing Asia continues to be resilient. Following the rise in inflation in 2021 and 2022, inflation has declined in 2023 and into 2024. Growth is being driven by robust domestic demand, improving semiconductor exports, and continued recovery in tourism. ADB forecasts 4.9% growth for developing Asia this year and next year.
Transcript
Economic growth in developing Asia continues to be resilient.
Following the rise in inflation in 2021 and 2022, inflation has declined in 2023 and into 2024.
Growth is being driven by robust domestic demand, improving semiconductor exports, and continued recovery in tourism.
ADB forecasts 4.9% growth for developing Asia this year and next year.
Stronger growth in South and Southeast Asia will offset slower growth in other subregions.
Growth in the People’s Republic of China (PRC) is forecast to slow down to 4.8% this year and 4.5% next year amid continued property market weakness.
India’s growth is forecast at 7.0% this year and 7.2% next year boosted by strong investment, recovering consumption, and improving exports.
Meanwhile, inflation in developing Asia is expected to decline to 3.2% this year and 3.0% next year, as interest rate hiking cycles have peaked.
There are several risks to developing Asia’s growth outlook, including the current conflicts in the Middle East and geopolitical tensions.
Uncertainty about US interest rates, intensified weakening of the property sector in the People’s Republic of China, and the effects of extreme weather also weigh on the region’s outlook.
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