ADB Revised Estimated Economic Growth For Developed Countries In Asia Pacific So Only 4.3 Percent

JAKARTA - The Asian Development Bank (ADB) has lowered its estimated economic growth in Asian and Pacific developing countries to 4.3 percent this year, amid rising challenges that hit the region, according to a prospect report released on Wednesday, September 21.

Reporting from Antara, the updated Asian Development Outlook 2022 projects the region's economy to grow by 4.9 percent in 2023, compared to the projected bank in April of 5.3 percent.

The report said consumer spending and domestic investment were driving growth as the economy in the region continued to recover from the pandemic, in part thanks to vaccination push and reduction in deaths from COVID-19.

However, he added that the continued Russia-Ukraine conflict has increased global uncertainty, exacerbated supply disruptions, as well as the energy and erratic food markets. The more aggressive monetary tightening by the US Federal Reserve and the European Central Bank (ECB) undermined global demand and rocked financial markets.

"Asia's developing countries continue to recover, but the risks seem huge," ADB chief economist Albert Park said, urging governments in Asian developing countries to remain vigilant against these risks and take the necessary steps to contain inflation without thwarting growth.

ADB has also raised its inflation forecast in Asian developing countries this year to 4.5 percent from its previous projection of 3.7 percent. The estimated inflation for next year is 4.0 percent, up from 3.1 percent.