Manila, July 19 (EFE).- The Asian Development Bank (ADB) on Wednesday maintained its growth outlook for developing economies in Asia in 2023 at 4.8 percent,driven by “robust domestic demand” and “moderating inflation.”
“Asia and the Pacific continues to recover from the pandemic at a steady pace,” ADB’s Chief Economist Albert Park said in the report.
“Domestic demand and services activity are driving growth, while many economies are also benefiting from a strong recovery in tourism,” he added.
The developing countries in Asia that will grow the fastest in 2023 are India, at 6.4 percent, the Philippines, at 6 percent, and Vietnam, at 5.8 percent, according to ADB.
The bank said that inflation would continue to moderate in the coming months, “approaching pre-pandemic levels as fuel and food prices decline.”
Inflation in developing Asia is expected to stand at 3.6 percent this year, up from the 4.2 percent forecast in its previous report in April, while the inflation outlook for 2024 is raised to 3.4 percent from its earlier estimate of 3.3 percent.
The reopening of the Chinese economy, which is projected to grow this year at 5 percent, is boosting the region’s growth despite a slowdown in the demand for developing Asia’s exports of electronics and other manufactured goods due to monetary tightening to contain inflation, ADB said.
However, the bank marginally lowered the growth forecast for 2024 from 4.8 percent to 4.7 percent, as “industrial activity and exports remain weak, and the outlook for global growth and demand next year has worsened.”
The growth outlook for Southeast Asia for this year was also lowered from 4.7 percent to 4.6 percent, and from 4.9 percent to 4.8 percent for 2024.
The forecast for the Caucasus and Central Asia region was revised slightly down from 4.4 percent to 4.3 percent for this year, and from 4.6 percent to 4.4 percent for 2024. EFE