Asian Development Outlook (ADO) April 2023
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This publication highlights brighter economic prospects for Asia and the Pacific amid ongoing challenges. It forecasts growth across the region’s developing economies of 4.8% this year and in 2024, up from 4.2% in 2022.
The reopening of the People’s Republic of China (PRC) will boost regional economic growth through supply chain linkages and demand for goods and services. Growth in the PRC is expected to rebound to 5.0% this year from 3.0% in 2022. Healthy domestic demand in India will also support regional growth: India is forecast to grow by 6.4% in 2023. Growth in the Caucasus and Central Asia, the Pacific, and Southeast Asia will be lifted as tourism recovers. Meanwhile, headline inflation is expected to decelerate from 4.4% in 2022 to 4.2% this year and 3.3% in 2024.
However, higher debt and interest rates have magnified financial stability risks, as evidenced by recent banking sector problems in the United States and Europe. An escalation in the Russian invasion of Ukraine could cause renewed surges in commodity prices, stoking global inflation and inducing further monetary tightening. Further, climate change and global fracturing remain persistent challenges. To confront these challenges, policy makers need to strengthen policies to ensure financial stability and actively support multilateralism to deepen regional cooperation.
- Developing Asia’s economies expected to grow 4.8% in 2023 and 2024 - ADB report
- Inflation in developing Asia is forecasted to decelerate to 4.2% in 2023 and 3.3% in 2024, from 4.4% in 2022 - ADB report
- Developing Asia’s economies are reopening with impressive dynamism as private consumption, investment, and services are reviving - ADB report
Jump to country/economy chapter
- ADO 2023—Highlights
- Brighter Prospects Amid Ongoing Challenges
- Economic Trends and Prospects in Developing Asia
- Caucasus and Central Asia
- East Asia
- South Asia
- Southeast Asia
- The Pacific
- Statistical Appendix