Economic forecasts have since been updated
Asian Development Outlook (ADO) 2022: Key Messages
- The Russian invasion of Ukraine has heightened uncertainty and unsettled commodity markets.
- The pandemic persists, fueled by the Omicron variant. Milder health impacts and vaccination progress have allowed economies to remain more open than in previous waves.
- GDP in the region will expand by 5.2% in 2022 and 5.3% in 2023, on continued recovery in domestic demand and solid exports. Inflation will rise to 3.7% in 2022 and 3.1% in 2023.
- Risks include escalation of Russia's invasion of Ukraine, financial instability triggered by the Fed’s aggressive tightening, emergence of more lethal COVID-19 variants, and disruptions associated with the People's Republic of China's (PRC's) current outbreaks.
- The theme chapter shows how developing Asia must mobilize taxes for development, and provides policy solutions consistent with economy-specific circumstances and priorities.