Developing Asia economies set to grow 5.2% this year amid global uncertainty

Developing Asia economies set to grow 5.2% this year amid global uncertainty
# 06 April 2022 13:33 (UTC +04:00)

Developing Asia’s economies are forecast to grow 5.2% this year and 5.3% in 2023, thanks to a robust recovery in domestic demand and continued expansion in exports, APA-Economics reports citing Asian Development Bank.

"However, uncertainties stemming from the Russian invasion of Ukraine, the continuing coronavirus disease (COVID-19) pandemic, and tightening by the United States Federal Reserve pose risks to the outlook.

Most of developing Asia will see steady growth this year and in 2023. Economies in the Caucasus and Central Asia are forecast to grow 3.6% on average this year and 4.0% next year. The trade-dependent economies of Southeast Asia are forecast to grow collectively by 4.9% this year and 5.2% in 2023. Pacific economies, which are highly dependent on tourism, are expected to grow 3.9% this year and 5.4% in 2023, following a 0.6% contraction in 2021.

East Asia is expected to see economic growth of 4.7% this year and 4.5% in 2023. The People’s Republic of China, the region’s largest economy, is forecast to grow 5.0% this year and 4.8% next year, amid continued export strength. South Asian economies are expected to expand collectively by 7.0% in 2022 and 7.4% in 2023, with India—the subregion’s largest economy—expected to grow 7.5% this fiscal year and 8.0% next fiscal year.

The Russian invasion of Ukraine poses the most severe risk to developing Asia’s economic outlook. The war is already affecting economies in the region through sharp increases in prices for commodities such as oil, and has heightened instability in global financial markets. COVID-19 continues to impact many parts of developing Asia, with some economies experiencing new surges in cases," noted in the report.

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