ADB Projects Economics Of Developing Countries In Asia To Grow 4.8 Percent

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JAKARTA - The Asian Development Bank (ADB) projects that the economies of developing countries in Asia will grow 4.8 percent compared to the same period last year (year-on-year/yoy) in 2023 and 2024, up from the achievement of 4.2 percent (yoy) last year.

"China recovery and healthy domestic demand in most shining economies will support the growth of Asian developing countries this year and next year," said Main Economist of the ADB Department of Economic Research and Regional Cooperation Arief Ramayandi in the virtual webinar Asian Development Outlook April 2023, quoted from Antara, Tuesday 4 April.

He said the prospect was brighter amid the continuing challenges. The reason is, the institution previously in December 2022 projected that the area would grow 4.6 percent (yoy) this year.

However, weaker global demand at the end of last year has reduced production. But there is good news earlier this year where indicators of business conditions are starting to improve again.

As pressure on the supply side began to fade, ADB projects that Asian developing countries' inflation will decline from 4.4 percent (yoy) last year to 4.2 percent (yoy) this year before slowing further down to 3.3 percent (yoy) in 2024, gradually moving towards an average before the pandemic.

"The reopening of the Chinese economy, which is faster than expected, will pose a better possibility, but there are still many challenges," he added.

Arief explained that the growth of Asian developing countries has slowed down in the second half of 2022 due to weakening global demand. However, this has been offset by the very rapid recovery of several countries in the first half.

The net export rate has decreased in the second half of last year, especially in key technology exporting areas, namely Korea, Singapore, and Taipei. The decline was mainly due to weaker global prospects.

Even so, growth has been strong for most Southeast Asian economies, especially Indonesia, Malaysia, the Philippines, and Thailand. Growth in the second half of last year in four economies has been driven mainly by consumption.