The Asian Development Bank (ADB) on Wednesday slightly raised its 2024 growth forecast for developing Asia, which includes the continent’s developing nations, to 5.0 percent from the 4.9 percent projected in April. The 2025 growth outlook remains unchanged at 4.9 percent.
In its latest outlook report, the ADB also maintained its economic growth projections for China at 4.8 percent in 2024 and 4.5 percent in 2025. The updated forecast for developing Asia reflects rising regional exports and resilient domestic demand.
Inflation is expected to slow to 2.9 percent this year due to easing global food prices and the lingering effects of higher interest rates, according to the latest edition of the Asian Development Outlook (ADO).
Following a post-pandemic recovery driven primarily by domestic demand, exports are rebounding and contributing to the region’s economic growth. Strong global demand for electronics, especially 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,” said ADB Chief Economist Albert Park. “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.”
While inflation is moderating toward pre-pandemic levels across the region, price pressures remain high in some economies. Food inflation is still elevated in South Asia, Southeast Asia, and the Pacific, partly due to adverse weather and food export restrictions in some economies.
China’s growth forecast, the region’s largest economy, remains at 4.8 percent for this year. A continued recovery in services consumption and stronger-than-expected exports and industrial activity are supporting the expansion, even though the struggling property sector has yet to stabilize. The Chinese government introduced additional policy measures in May to support the property market.
India, the region’s fastest-growing economy, also retains its growth forecast of 7.0 percent for fiscal year 2024. India’s industrial sector is expected to grow robustly, driven by manufacturing and strong demand in construction. Agriculture is anticipated to rebound with forecasts for an above-normal monsoon, while investment demand remains strong, led by public investment.
