Asia set for strong growth after China’s opening, ADB says
The Manila-based development bank estimates that the region will grow at 4.8 percent in 2023 and 2024, up from 4.2 percent last year.
Asia will experience strong economic growth this year after China lifts strict pandemic restrictions, the Asian Development Bank (ADB) said.
Economies in Asia and the Pacific are expected to grow 4.8 percent in 2023 and 2024, up from 4.2 percent last year, amid rising consumption, tourism and investment, the ADB said in its latest growth outlook published Tuesday.
The Manila-based development bank pointed to China’s reopening after the end of its strict “zero COVID” strategy as “the main factor” behind the better outlook.
Still, the ADB said the global outlook carries several risks that “must be carefully monitored and proactively addressed,” including an extension or escalation of Russia’s war in Ukraine, rising interest rates and high levels of debt.
China’s economy is on track to grow 5 percent this year and 4.5 percent in 2024, the ABD said. The bank also highlighted the strong outlook for India, with an estimated growth of 6.4 percent this year and 6.7 percent next year.
Inflation is expected to slow to 4.2 percent in 2023 and 3.3 percent in 2024, after reaching 4.4 percent last year.
“The outlook for Asia-Pacific economies is brighter and they are poised for a strong recovery as we return to normalization after the pandemic,” said ADB chief economist Albert Park.
“People are starting to travel again for leisure and work, and economic activities are gaining momentum. With many challenges remaining, governments in the region should remain focused on policies that support stronger cooperation and integration to promote trade, investment, productivity and resilience.”
Southeast Asian countries such as Indonesia, the Philippines and Vietnam are also expected to show solid growth, driven by tourism and strong domestic demand, with the region’s economy expected to grow at 4.7 percent this year and 5 percent in 2024.
The Caucasus and Central Asia are expected to grow by 4.4 percent this year and 4.6 percent in 2024, while the Pacific island economies are expected to grow by 3.3 percent and 2.8 percent, respectively.