Developing Asia will likely grow at a weaker-than-previously expected pace this year and in 2023, according to the Asian Development Bank.
The region is seen expanding 4.2% this year, before accelerating to 4.6% in 2023, the Manila-based lender said in a report Wednesday. The projections are down from the previously estimated expansion of 4.3% and 4.9%, respectively.
Growth in China, the largest economy in Asia, is expected to slow in 2022 to 3% against a 3.3% expansion predicted in a September report. Hong Kong is the only economy in the region expected to post a contraction of 3.3% this year.
ADB expects Southeast Asia’s gross domestic product to expand 5.5% this year from 5.1% previously, on robust consumption and tourism recovery. The region will see growth cool to 4.7% next year, mirroring weaker global demand. India will likely maintain its growth rate at 7% this year before accelerating to 7.2% in 2023.
Inflation forecast in 2022 for developing Asia was revised down slightly to 4.4% from 4.5%, but raised to 4.2% from 4% for 2023.