- Developing Asia is enjoying solid economic growth, with ADB projecting regional expansion at 4.7% this year and 4.8% next year.
- Healthy domestic demand, stable financial conditions, and resilient service sectors supported developing Asia’s growth in the first half of 2023.
- After rising sharply last year, inflation is now declining in most of the region. Inflation in developing Asia is projected to reach 3.6% this year and 3.5% next year.
Developing Asia is enjoying solid economic growth. Healthy domestic demand, stable financial conditions, and resilient service sectors supported growth in the first half of 2023. The growth forecast for the region is updated to 4.7% in 2023 and 4.8% in 2024. After rising sharply last year, inflation is now on the decline in most of the region.
Transcript
Developing Asia is enjoying solid economic growth.
Healthy domestic demand, stable financial conditions, and resilient service sectors supported growth in the first half of 2023.
After rising sharply last year, inflation is now on the decline in most of the region.
After collapsing during the COVID-19 pandemic, tourism is bouncing back in many economies.
Money transfers to the region remain strong.
ADB forecasts 4.7% GDP growth for developing Asia this year and 4.8% next year.
The growth forecast for the People’s Republic of China is lowered to 4.9% this year and retained at 4.5% next year.
India’s growth is forecast at 6.3% this year and 6.7% next year, driven by strong investment and consumption.
Inflation in developing Asia is expected to decline to 3.6% this year and 3.5% next year, amid falling food and energy prices.
However, developing Asia’s outlook is subject to several risks.
One major risk is the possibility of further weakness in the property sector in the People’s Republic of China.
Meanwhile, El Niño is increasing the risk of flooding and droughts, which may challenge food security.
Policy makers need to keep a close watch on inflation and take measures to protect food security.
Governments also need to be vigilant in addressing financial vulnerabilities amid higher interest rates.
Download today adb.org/outlook
