The Asian Development Bank (ADB) has raised its economic forecast for developing economies in Asia and the Pacific, after robust domestic demand drove higher-thanexpected growth in the People’s Republic of China (PRC) and India. The regional economy is expected to grow 4.9 percent this year, compared with a previous forecast of 4.7 percent in September, according to the Asian Development Outlook (ADO) December 2023, released on December 13, 2023. The outlook for next year is maintained at 4.8 percent.
The PRC’s economy is projected to expand by 5.2 percent this year, compared with a previous forecast of 4.9 percent, after household consumption and public investment boosted growth in the third quarter. The growth outlook for India has been raised to 6.7 percent from 6.3 percent following faster-than-expected expansion in JulySeptember, driven by double-digit growth in industry. The upgrades for the PRC and India more than offset a lowering of the forecast for Southeast Asia, caused by lackluster performance in the manufacturing sector. The region’s inflation outlook for this year has been lowered to 3.5 percent from an earlier projection of 3.6 percent, according to ADO December 2023. For next year, inflation is expected to edge up to 3.6 percent, compared with a previous forecast of 3.5 percent.
The growth outlook for Southeast Asia this year has been lowered to 4.3 percent from 4.6 percent, amid weak demand for manufacturing exports. The outlook for economies in the Caucasus and Central Asia has been raised slightly, while projections for Pacific economies are unchanged. http://tinyurl.com/4rdub6j7
Source: IBP