BUSINESS
Advocates Philippines
Asia's Economic Growth Gets A Boost: ADB Forecasts 5.0% Growth Amid Export Surge
Photo credit: ADB
The Asian Development Bank (ADB) has just bumped up its growth forecast for the region to 5.0% this year, a slight increase from the previous 4.9% projection. What's fueling this optimism? It's a combination of rising regional exports and robust domestic demand.
According to the latest Asian Development Outlook (ADO), released today, the region is experiencing a rebound in exports, especially in electronics like semiconductors used in cutting-edge tech and AI applications. This export surge, coupled with resilient domestic consumption, is driving the region's economic resurgence after the pandemic downturn.
Albert Park, ADB's Chief Economist, highlighted that most of Asia and the Pacific are outpacing last year's economic growth rates. "The fundamentals remain strong," Park noted, "but policymakers must remain vigilant about various risks—from election uncertainties to geopolitical tensions—that could impact the outlook."
Inflation, another key economic indicator, is expected to ease to 2.9% this year. Factors contributing to this decline include lower global food prices and the lingering effects of previous interest rate hikes. However, some economies in South Asia, Southeast Asia, and the Pacific are still grappling with high food inflation due to adverse weather conditions and export restrictions.
Looking at specific economies, China, the region's economic powerhouse, maintains a growth forecast of 4.8% this year. The recovery in services consumption and robust exports are bolstering China's economic expansion, despite ongoing challenges in the property sector.
India, meanwhile, remains a bright spot with a growth forecast of 7.0% for fiscal year 2024. Strong performances in manufacturing, construction, and agriculture are driving India's growth, supported by public investments and expectations of a favorable monsoon.
Southeast Asia is also on track with a growth forecast of 4.6% this year, thanks to improvements in both domestic demand and exports. The Caucasus and Central Asia have seen their growth outlook raised to 4.5%, driven by stronger-than-expected performances in Azerbaijan and the Kyrgyz Republic. In the Pacific, growth for 2024 remains steady at 3.3%, propelled by tourism, infrastructure investments, and renewed mining activities in Papua New Guinea.
According to the latest Asian Development Outlook (ADO), released today, the region is experiencing a rebound in exports, especially in electronics like semiconductors used in cutting-edge tech and AI applications. This export surge, coupled with resilient domestic consumption, is driving the region's economic resurgence after the pandemic downturn.
Albert Park, ADB's Chief Economist, highlighted that most of Asia and the Pacific are outpacing last year's economic growth rates. "The fundamentals remain strong," Park noted, "but policymakers must remain vigilant about various risks—from election uncertainties to geopolitical tensions—that could impact the outlook."
Inflation, another key economic indicator, is expected to ease to 2.9% this year. Factors contributing to this decline include lower global food prices and the lingering effects of previous interest rate hikes. However, some economies in South Asia, Southeast Asia, and the Pacific are still grappling with high food inflation due to adverse weather conditions and export restrictions.
Looking at specific economies, China, the region's economic powerhouse, maintains a growth forecast of 4.8% this year. The recovery in services consumption and robust exports are bolstering China's economic expansion, despite ongoing challenges in the property sector.
India, meanwhile, remains a bright spot with a growth forecast of 7.0% for fiscal year 2024. Strong performances in manufacturing, construction, and agriculture are driving India's growth, supported by public investments and expectations of a favorable monsoon.
Southeast Asia is also on track with a growth forecast of 4.6% this year, thanks to improvements in both domestic demand and exports. The Caucasus and Central Asia have seen their growth outlook raised to 4.5%, driven by stronger-than-expected performances in Azerbaijan and the Kyrgyz Republic. In the Pacific, growth for 2024 remains steady at 3.3%, propelled by tourism, infrastructure investments, and renewed mining activities in Papua New Guinea.
Jul 17, 2024
We are dedicated storytellers with a passion for bringing your brand to life. Our services range from news and media features to brand promotion and collaborations.
Interested? Visit our
Contact Us page for more information. To learn more about what we offer, check out our latest article on services and opportunities.
