ADB Raises Growth Forecast for Developing Asia, Highlights India and Vietnam's Economic Progress

ADB raises growth forecast for developing Asia to 5.0 per cent, calls India as the region's fastest-growing economy

The ADB has also slightly raised its economic growth forecast for developing Asia and the Pacific this year to 5.0 percent, up from a previous projection of 4.9 percent. According to the organization, this adjustment is attributed to rising regional exports and resilient domestic demand. The growth outlook for next year remains at 4.9 percent. The inflation rate is also expected to slow to 2.9 percent this year due to easing global food prices and the lingering effects of higher interest rates. The ADB noted that following a post-pandemic recovery primarily driven by domestic demand, rebounding exports are now contributing to the region's economic growth. Strong global demand for electronics, particularly semiconductors used in high-technology and artificial intelligence applications, is boosting exports from several Asian economies. "Most of Asia and the Pacific is seeing faster economic growth compared with the second half of last year. The region's fundamentals remain strong, but policymakers still need to pay attention to several risks that could affect the outlook, from uncertainty related to election outcomes in major economies to interest rate decisions and geopolitical tensions," said ADB Chief Economist Albert Park. The ADB also highlighted that while regional inflation is moderating towards pre-pandemic levels, price pressures remain elevated in some areas. Food inflation remains high in South Asia, Southeast Asia, and the Pacific, partly due to adverse weather and food export restrictions in certain economies. The growth forecast for the People's Republic of China (PRC), the region's largest economy, is maintained at 4.8 percent this year. A continued recovery in services consumption and stronger-than-expected exports and industrial activity are supporting the expansion, despite the PRC's struggling property sector, which has yet to stabilize. In May, the government introduced additional policy measures to support the property market. (ANI)

ADB raises growth forecast for Vietnam to 6.2% this year - VnExpress International

In the latest edition of Asian Development Outlook, which was released on July 17, the financial institution projected Vietnam's economic growth at 6.2%, higher than the projection of 6% the bank made in April. Growth in developing Asia and the Pacific is expected to be 5.0% this year, the ADB said, higher than the previous forecast of 4.9%. The region grew by 5.1% in 2023. The report noted that stronger domestic demand and exports, particularly electronic products, has become the driving force behind the region's rapid growth. However, ADB still maintained its growth forecast of 4.9% for the Asian region in 2025, due to concerns about the impact of changes in the world, including uncertainty relating to election outcomes in major economies and geopolitical tensions. The bank raised its economic growth forecast for the East Asia region in 2024 to 4.6%, compared to the previous projection of 4.5%, driven by a surge in exports of semiconductors and other electronic products thanks to the artificial intelligence (AI) boom. The Southeast Asia region is projected to grow by 4.6% this year and 4.7% next year. The ADB kept its 2024 and 2025 growth forecasts for China at 4.8% and 4.5% respectively, but noted a risk that a property slump there could deepen and lead to weaker growth prospects. Official data released by National Bureau of Statistics of China on July 15 showed that the country's economy grew 4.7% in April-June from a year earlier, its slowest since the first quarter of 2023. The ADB expects regional inflation to slow to 2.9% in 2024 from 3.3% last year, before nudging up to 3.0% in 2025.