ADB upgrades 2023 growth forecast for Asia-Pacific to 4.9%

The Asian Development Bank on Wednesday revised upward its 2023 growth forecast for developing economies in Asia and the Pacific to 4.9 percent from its September projection of 4.7 percent, citing higher-than-expected growth in China and India.

The Manila-based lender maintained its projection of a 4.8 percent growth for the region next year on expectations that continued robust domestic demand and services will support growth.

The ADB said healthy domestic demand and recovering tourism are fostering economic activity this year as inflation moderated despite slower global growth and the lagged effects of monetary policy tightening.

China is forecast to post a 5.2 percent growth this year, up from the 4.9 percent projection in September, while India's growth outlook was raised to 6.7 percent from 6.3 percent. Household consumption and public investment in China and double-digit growth in industry in India were observed during the July-September period this year.

Meanwhile, the ADB has revised its 2023 forecast for Southeast Asia downward to 4.3 percent from 4.6 percent, citing weak demand for manufacturing exports. By country, the growth outlooks for Malaysia, Thailand, and Vietnam were revised downward.

Inflation in the Asia-Pacific region was expected to register at 3.5 percent this year, lower than last year's 4.4 percent.

"Governments in Asia and the Pacific need to remain vigilant to ensure that their economies are resilient and that growth is sustainable," said ADB chief economist Albert Park, noting that risks such as elevated global interest rates and climate events, such as El Nino, remain.

The developing economies in Asia and the Pacific refer to 46 countries and territories, excluding Japan, Australia, and New Zealand, the ADB said.

© Kyodo News