ADB forecasts developing Asia’s economy to grow 4.9% in 2024

Tuesday, 16 April 2024 01:01 - - {{hitsCtrl.values.hits}}

Developing economies in Asia and the Pacific are forecast to expand by 4.9% on average this year as the region continues its resilient growth amid robust domestic demand, improving semiconductor exports, and recovering tourism.

Growth will continue at the same rate next year, according to the Asian Development Outlook (ADO) April 2024, released last week by the Asian Development Bank (ADB). Inflation is expected to moderate in 2024 and 2025, after being pushed up by higher food prices in many economies over the past two years.

Stronger growth in South and Southeast Asia – fuelled by both domestic demand and exports – is offsetting a slowdown in the People’s Republic of China (PRC) caused by weakness in the property market and subdued consumption. India is expected to remain a major growth engine in Asia and the Pacific, with a 7.0% expansion this year and 7.2% next year. The PRC’s growth is forecast to slow to 4.8% this year and 4.5% next year, from 5.2% last year.

“We see strong, stable growth for the majority of economies in developing Asia this year and next,” said ADB Chief Economist Albert Park. “Consumer confidence is improving, and investment is resilient overall. External demand also appears to be turning a corner, particularly with regard to semiconductors.”