Tempo is reporting that the Asian Development Bank (ADB) forecasts economic growth in the Asia-Pacific region will reach an average of 4.9 percent in 2024. This growth is supported by strong domestic demand, improved semiconductor exports, and the recovery of the tourism industry.
“We believe that growth in the majority of developing economies in Asia will stabilize this year and next,” said ADB Chief Economist Albert Park in the Asian Development Outlook (ADO) April 2024 report released in Jakarta on Thursday (11/4/24,) quoted by Antara News.
ADB also predicts that economic growth next year will be around the same level as this year.
Albert stated that stronger growth in South and Southeast Asia is driven by domestic demand and exports. This offsets the slowdown in China due to property market downturns and weak consumption.
India is projected to remain a key growth engine in Asia and the Pacific, with growth of 7 percent in 2024 and 7.2 percent in 2025. Meanwhile, China’s growth is expected to slow to 4.8 percent this year and 4.5 percent next year, from 5.2 percent last year, according to Tempo.
“Consumer confidence continues to improve, and overall investment remains strong. External demand also appears to have turned positive, especially in the semiconductor sector,” said Albert.
However, policymakers should remain cautious, says Tempo, as there are still several risks. These risks include supply chain disruptions, uncertainty about US monetary policy, extreme weather effects, and the continued weakening of the property market in China.
Regarding inflation, ADB predicts that it will ease in 2024 and 2025, after being boosted by rising food prices in various economies over the past two years.
Source: Tempo
Stock image by Moondance from Pixabay
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