The Asian Development Bank (ADB) said that China's economic rebound is powering faster-than-expected growth in developing economies across Asia.
The ADB upgraded its 2023 growth outlook for Developing Asia, which includes 46 Asia-Pacific economies to 4.8%, up from 4.6% in December.
- Developing Asia economies experienced an average growth rate of 4.2% in 2022.
- The ADB projects that the Chinese economy will grow by 5% in 2023, up from a previous estimate of 4.3% growth.
- China started rolling back its restrictive Zero-COVID policies in December, ushering in a period of increased growth in the country's manufacturing sector.
- The
ADB projects that economies in South Asia will grow by 5.5% in 2023,
with India's projected 6.4% growth rate playing a major role in that
region's accelerated growth.
- The development bank expects Southeast Asian economies to grow by 4.7% in 2023.
- The
ADB expects the annual inflation rate in Developing Asia economies to
fall to 4.2% in 2023 and 3.3% in 2024, after it hit 4.4% in 2022.
- ADB
Chief Economist Albert Park said that Asia's economic growth in 2023
could be threatened by financial contagion from the U.S. or European
banking sectors.
