ADB upgrades growth forecast for developing Asia to 4.9 pct

TOKYO, Dec 13 (KUNA) -- The Asian Development Bank (ADB) on Wednesday raised its economic forecast for developing Asia this year after robust domestic demand drove higher-than-expected growth in China and India.

In an update of its Asian Development Outlook, the Manila-based lender expects gross domestic product (GDP) in the region to expand 4.9 percent this year, up from its September forecast of 4.7 percent growth, while maintained the outlook for next year at 4.8 percent.
Developing Asia covers 46 economies in Central Asia, East Asia, South Asia, Southeast Asia and the Pacific, but excludes industrialized countries of Japan, Australia and New Zealand.
"Developing Asia continues to grow at a robust pace, despite a challenging global environment," ADB Chief Economist Albert Park said in a statement.
"Inflation in the region is also gradually coming under control. Still, risks remain, from elevated global interest rates to climate events such as El Nino. Governments in Asia and the Pacific need to remain vigilant to ensure that their economies are resilient, and that growth is sustainable," said Park.
The ADB revised up growth projection for China, the region's largest economy, to 5.2 percent this year from 4.9 percent estimate in September, citing robust household consumption and public investment in the third quarter.
India's growth prospect was raised to 6.7 percent from 6.3 percent this year, thanks to faster-than-expected expansion in July-September, driven by double-digit growth in the industry.
However, the bank kept its growth outlook next year for China and India at 4.5 percent and 6.7 percent respectively.
The ADB lowered the GDP growth forecast for Southeast Asia to 4.3 percent in 2023 and 4.7 percent in 2024, compared with earlier estimate of 4.6 percent and 4.8 percent respectively.
"The upgrades for China and India more than offset a lowering of the forecast for Southeast Asia, caused by lackluster performance in the manufacturing sector," the ADB said in the report.
"Risks to the outlook include persistently elevated interest rates in the US and other advanced economies, which could contribute to financial instability in vulnerable economies in the region, especially those with high debt," the report said.
The ADB also warned that potential supply disruptions caused by the El Nino weather pattern or the Russian invasion of Ukraine could also rekindle inflation, particularly regarding food and energy.
The ADB is a multilateral development finance institution dedicated to reducing poverty in Asia and the Pacific. Established in 1966, it has now owned by 68 members, mostly from the region, as well as the US, the UK and Germany. (end) mk.lr.