KUALA LUMPUR, April 6 (NNN-Bernama) — Developing Asia’s economies are expected to grow by 5.2 per cent this year and 5.3 per cent in 2023, thanks to a robust recovery in domestic demand and continued expansion in exports, said Asian Development Bank (ADB).
However, uncertainties stemming from the Russian invasion of Ukraine, the ongoing COVID-19 pandemic and the United States (US) Federal Reserve’s tightening of the US monetary policy pose risks to the outlook, the ADB said in its flagship economic publication “Asian Development Outlook (ADO) 2022’ released Wednesday.
“Several subregions, including South Asia and East Asia, are expected to return to the economic growth rates they experienced before the pandemic.
“While inflation in the region remains manageable, it is forecast to rise to 3.7 per cent this year, before moderating to 3.1 per cent in 2023,” it said.
According to the report, the Russian invasion of Ukraine poses the most severe risk to developing Asia’s economic outlook, with sharp increases in prices for commodities such as oil, and heightened instability in global financial markets.
Meanwhile, COVID-19 continues to impact many parts of developing Asia, with some economies experiencing new surges in cases.
The ADB said trade-dependent economies of Southeast Asia are forecast to grow collectively by 4.9 per cent this year and 5.2 per cent in 2023, while Malaysia’s economy is expected to expand by six per cent in 2022 and 5.4 per cent next year.
ADB chief economist Albert Park said economies in developing Asia are starting to find their footing as they slowly emerge from the worst of the COVID-19 pandemic.
“However, geopolitical uncertainty and new COVID-19 outbreaks and virus variants could derail this momentum.
“Governments in the region will need to remain vigilant and be prepared to take steps to counter these risks — including making sure that as many people as possible are fully vaccinated against COVID-19,” he added.
Park said monetary authorities should also continue to monitor their inflation situation closely and not fall behind the curve.
— NNN-BERNAMA