Asia Pacific’s robust growth continues despite a challenging global economy. Developing Asia’s growth forecast in 2023 is revised upwards to 4.9%. The region’s inflation is expected to decrease to 3.5% in 2023.
Asian Development Bank Revises Down Forecast for Thai Economy
The Asian Development Bank (ADB) has revised down its forecast for the Thai economy in 2023 due to the global economic slowdown from 3.5% to 2.5%. However, the regional economy is expected to grow 4.9% this year, compared with a previous forecast of 4.7% in September, according to the Asian Development Outlook (ADO) December 2023, released today. The outlook for next year is maintained at 4.8%.
Key Takeaways
Developing Asia’s growth forecast for 2023 has been revised up to 4.9%, driven by robust domestic demand, indicating a positive outlook despite global challenges. Inflation in the region is expected to decline to 3.5% in 2023, but potential supply disruptions and higher price pressures in certain countries may slightly increase inflation to 3.6% in 2024. Southeast Asia’s growth forecasts have been revised down for 2023 due to weak external demand, while South Asia’s growth projection is revised up for 2023 driven by stronger-than-expected growth in India.
Positive Projections Despite Global Challenges
The Asian Development Outlook (ADO) for December 2023 reveals that the outlook for developing Asia remains positive, with a growth forecast of 4.9% for 2023 and 4.8% for 2024. Inflation in the region is expected to decrease to 3.5% in 2023 and slightly rise to 3.6% in 2024. However, there are some downside risks, including higher interest rates in advanced economies and potential supply disruptions from El Niño and the Russian invasion of Ukraine. The outlook for different regions within Asia varies, with the Caucasus and Central Asia, East Asia, and South Asia experiencing improvements in growth forecasts, while Southeast Asia sees a downward revision.
Source : ADB lowers its economic growth forecast for Thailand in 2023 from 3.5% to 2.5%