Wahyu Dwi Anggoro
“Some central banks in the region have started to lower interest rates, which will help boost growth. Still, governments need to be vigilant against the many risks that the region faces. Property market weakness in the PRC remains a concern. Extreme weather events due to climate change and the effects of El Nibo remind us that economies must work together to build resilience and protect the most vulnerable.”
Inflation in developing Asia and the Pacific is expected to be 3.6% this year, down from an earlier projection of 4.2%. This is largely due to low inflation in China, along with steadying food and energy prices. The inflation forecast for next year is 3.5%.
Among developing Asia’s subregions, Southeast Asia’s growth outlook is cut to 4.6% this year from an earlier projection of 4.7%, due to weaker export demand. The forecast for South Asia is also lowered by 0.1 percentage points, to 5.4%—though it remains the fastest-growing subregion, thanks to strong investment and consumption. The outlook for East Asia is cut to 4.4% from 4.6%, with the PRC now expected to grow by 4.9% this year, from 5.0% in April. Growth forecasts have been raised for the Caucasus and Central Asia and for the Pacific. (WHY)
