Wahyu Dwi Anggoro
IDXChannel - Economic growth in Asia and the Pacific is expected to remain solid, although risks to the outlook are rising, according to a report by the Asian Development Bank (ADB).
The region’s developing economies are forecast to grow 4.7% this year, a slight downward revision from a previous projection of 4.8%, according to Asian Development Outlook (ADO) September 2023, released today.
The growth forecast for next year is maintained at 4.8%.
Growth in the region was upbeat in the first half of this year, driven by healthy domestic demand and reopening in China, even as a weaker global outlook reduced export demand. Rebounding tourism, resilient service sectors, healthy money transfers into the region, and improving financial conditions are all helping support economic activity, and inflation is receding in most economies after peaking last year.
However, weakness in the China’s property sector is weighing on regional prospects. High global interest rates have increased the risk of financial instability. Sporadic supply disruptions from the continuing Russian invasion of Ukraine, export restrictions, and the increased risk of droughts and floods caused by El Nino could once again trigger rising food prices and challenge food security.
“Developing Asia continues growing robustly, and inflation pressures are receding,” said ADB Chief Economist Albert Park in a media release on Wednesday (20/9/2023).
