Business & Economy

ADB lowers developing Asia’s 2023 growth forecast to 4.6%

Manila, Dec 14 (EFE).- Developing Asian countries will grow at 4.6 percent in 2023 and at 4.2 percent this year, the Asian Development Bank (ADB) said in a report on Wednesday.

In its last report in September, the bank had projected a growth of 4.3 percent in 2022 for the 46 regional members along with an expansion of 4.9 percent in 2023.

“Three main headwinds continue to hamper recovery in developing Asia: recurrent lockdowns in the People’s Republic of China (PRC), the Russian invasion of Ukraine, and slowing global growth,” the Manila-based lender said.

ADB’s latest report is based on information collected up to Nov. 30, a week before China began to ease its zero-Covid policy following protests in several parts of the country.

The bank also cuts China’s growth forecast for next year from the 4.5 percent it had projected in September to 4.3 percent, while keeping India’s forecast unchanged at 7.2 percent.

This is the third time this year that the bank has trimmed its growth forecasts for the region, which is also under inflationary pressure, partly due to the impact of the war in Ukraine and the increase in interest rates by the US Federal Reserve.

The ADB slightly lowered its inflation forecast for the region for 2022 from the 4.5 percent forecast in September to 4.4 percent but raised the inflation projection for next year to 4.2 percent from the 4 percent projected earlier.

“Recovery in developing Asia is expected to continue but lose some steam” with the exception of Caucasus and Central Asia, the lender said.

Meanwhile, Southeast Asia is headed for a lower-than-expected growth in 2023 of 4.7 percent from the 5 percent projected previously, due to high inflation and rising interest rates, which will affect consumer and business confidence, according to ADB.

Indonesia, Southeast Asia’s largest economy, will grow 4.8 percent in 2023, slightly lower than the 5 percent forecast in September, the bank said. EFE


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