(RTTNews) - The Asian Development Bank raised developing Asia's economic growth outlook for this year as strong export growth and domestic demand boosted activity in the first quarter.
In the Asian Development Outlook report released Wednesday, the ADB said the region will grow 5.0 percent in 2024, which was slightly better than the previous projection of 4.9 percent. The outlook for 2025 was maintained at 4.9 percent.
However, the agency cautioned that downside risks to outlook persist that includes heightened geopolitical tensions, trade fragmentation, and uncertainties related to elections in major economies.
East Asia's 2024 growth projection was lifted to 4.6 percent on strong exports of semiconductors and other goods driven by the artificial intelligence boom. The 2025 projection was maintained at 4.2 percent.
China's growth forecasts for 2024 and 2025 have not changed. Growth is seen at 4.8 percent this year and 4.5 percent in 2025. China's growth is supported by a recovery in services consumption and robust exports, which counterbalances the continued property market downturn.
Further, growth forecasts for Southeast Asia were maintained at 4.6 percent this year and 4.7 percent in 2025 and for the Pacific at 3.3 percent in 2024 and 4.0 percent in 2025.
South Asia is forecast to grow at a pace of 6.3 percent this year, and the 2025 projection was lowered marginally to 6.5 percent.
ADB said the Indian economy is on track to grow by 7.0 percent in FY2024 and 7.2 percent in FY2025, as projected in April.
Headline inflation in developing Asia is forecast to ease further from 3.3 percent in 2023 to 2.9 percent this year, and to stabilize at 3.0 percent in 2025.
