Developing Asian economies are projected to grow by 4.9 percent this year and in 2025, the Asian Development Bank said Thursday, citing robust domestic demand as well as continued recovery in goods exports and tourism.
An expected decline in China's economy to 4.8 percent this year and 4.5 percent next year, driven by weak property market and fading domestic consumption growth, will be offset by more robust growth in South Asia and Southeast Asia, according to the Manila-based lender's latest outlook.
India is forecast to maintain its position as a major growth engine in Asia due to strong investment, recovering consumption and gains in electronics and services exports, the ADB said, projecting a 7.0 percent growth for the country this year and 7.2 percent next year.
According to the ADB, Developing Asia, a grouping of 46 countries and territories in Asia and the Pacific, excluding Japan, Australia and New Zealand, would see its inflation drop to 3.2 percent this year and 3.0 percent in 2025, from 3.3 percent last year, owing to monetary policies remaining tight in many member economies.
The ADB warns of worsening geopolitical tensions and conflict, including attacks on cargo vessels in the Red Sea by the Iran-backed Houthis, and extreme weather, among others, as potential risks to growth.
