Developing Asia’s outlook remains upbeat despite global challenges. The 2023 growth forecast is revised up from September’s projection, to 4.9% from 4.7%, on robust domestic demand. The 2024 forecast is maintained at 4.8%.

Healthy domestic demand, strong remittances, and recovering tourism are underpinning economic activity, which continued to expand even as inflation moderated. These drivers offset the drag from a worsening export performance and the lagged effects of monetary policy tightening, and they are expected to continue fostering growth in the region in 2024. Downside risks are mainly associated with higher-for-longer interest rates in advanced economies. Possible supply disruptions from El Niño and the Russian invasion of Ukraine could renew energy and food security challenges and rekindle inflation.

Published December 2023.
Source: Asian Development Bank.

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