Mla [Philippines], April 5 : Economic growth in developing economies in Asia and the Pacific in 2023 is going to be faster as the continued easing of pandemic restrictions boosts consumption, tourism, and investment, according to Asian Development Bank (ADB).
In its Asian Development Outlook (ADO) April 2023, it said the reopening of China after the pandemic is the main factor brightening Asia and the Pacific region's growth prospects.
Excluding China, developing Asia is expected to grow 4.6 per cent this year and 5.1 per cent in 2024.
The region's inflation is forecast to moderate gradually toward pre-pandemic levels. It will decelerate to 4.2 per cent in 2023 and 3.3 per cent in 2024 after reaching 4.4 per cent last year.
Improved consumption and investment are boosting recovery in many regional economies, offsetting the impacts of elevated food and energy prices caused by the Russian invasion of Ukraine and other global factors.
According to the ADB report, tourism and remittances too are firm as pandemic restrictions ease further. In many tourism-dependent economies, visitor arrivals are steadily improving toward pre-pandemic levels.
Further, noting that tighter global financial conditions, combined with the increase in debt over the past decade and during the pandemic, have elevated financial stability risks, which it said is evident in the recent banking sector turmoil in the US and Europe.
It asserted these risks must be carefully monitored and proactively addressed.
"Prospects for economies in Asia and the Pacific are brighter, and they're poised for a strong recovery as we return to normalization following the pandemic," said ADB Chief Economist Albert Park.
"People are starting to travel again for leisure and work, and economic activities are gathering pace. Because many challenges remain, governments in the region need to stay focused on policies that support stronger cooperation and integration to promote trade, investment, productivity, and resilience."
Coming to India, its economy is estimated to expand by 6.4 per cent this year and 6.7 per cent next.
Strong tourism performance and robust domestic demand are boosting Southeast Asian economies like Indonesia, the Philippines, and Viet Nam, with the subregion projected to grow by 4.7 per cent this year and 5.0 per cent in 2024.
Established in 1966, ADB said it is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific.
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