ADB forecasts 4.8% growth for developing Asia in 2023 as predicted

MANILA. KAZINFORM - Developing Asian economies are expected to grow 4.8 percent this year, the Asian Development Bank said Wednesday, maintaining its earlier forecast as robust consumption and investment are likely to boost growth while exports weaken amid slower global demand, Kyodo reports.

The ADB said in its 2023 outlook that growth in East Asia is projected at 4.6 percent, in line with its earlier estimate. Southeast Asia is forecast to grow 4.6 percent, down from 4.7 percent in the earlier outlook, due to weaker global demand for exports of manufactured goods.

Inflation forecasts for the developing Asian economies were revised down from 4.2 percent to 3.6 percent, with price increases easing to levels more comparable with pre-pandemic averages.

Declining inflation in China played a large part in the downward revision of the figure, the bank said.

«With lower inflation in developing Asia and more moderate monetary tightening in the United States, most central banks in the region have kept policy rates steady this year, with signs emerging of a shift toward easier money,» the ADB said.

According to the ADB, developing Asia consists of a group of 46 economies in the Asia-Pacific region, excluding Japan, Australia and New Zealand.

The bank slightly downgraded its economic growth forecast for 2024 to 4.7 percent from 4.8 percent.