Wahyu Dwi Anggoro
IDXChannel - The Asian Development Bank (ADB) has revised down its growth forecasts for several subregions in Asia and the Pacific.
According to the Asian Development Outlook (ADO) July 2023 released on Wednesday (19/7/2023), the forecast for Southeast Asia is lowered to 4.6% in 2023 and 4.9% in 2024, compared with April estimates of 4.7% and 5.0%, respectively.
Meanwhile, the forecast for Caucasus and Central Asia is revised down marginally to 4.3% from 4.4% for this year, and to 4.4% from 4.6% for next year.
The reopening of China is bolstering the region’s growth. The growth outlook for developing economies in Asia and the Pacific is maintained at 4.8% this year.
However, demand for developing Asia’s exports of electronics and other manufactured goods is slowing, as monetary tightening drags on economic activity in major advanced economies. The region’s growth forecast for next year is marginally revised down to 4.7% from a 4.8% estimate in April.
“Asia and the Pacific continues to recover from the pandemic at a steady pace,” said ADB Chief Economist Albert Park in a press release on Wednesday.
“Domestic demand and services activity are driving growth, while many economies are also benefiting from a strong recovery in tourism. However, industrial activity and exports remain weak, and the outlook for global growth and demand next year has worsened," Park added.
Inflation is expected to continue falling, approaching pre-pandemic levels as fuel and food prices decline. Inflation in developing Asia is forecast at 3.6% this year, compared with an April forecast of 4.2%.
The inflation outlook for 2024, meanwhile, is raised to 3.4% from an earlier estimate of 3.3%. (WHY)
