Developing Asia economies to grow by 5.2% in 2022 – ADB

SINGAPORE (ICIS)–Developing Asia’s economies are forecast to grow 5.2% this year on the back of a robust recovery in domestic demand and a continued expansion in exports, the Asian Development Bank (ADB) said on Wednesday.

The ADB’s growth forecast for 2022 is lower than the 6.9% expansion for last year.

However, uncertainties stemming from the Russian invasion of Ukraine, the continuing pandemic, and tightening by the US Federal Reserve pose risks to the growth outlook for 2022, the ADB said in a statement.

Inflation in the region remains manageable but is forecast to rise to 3.7% this year from 2.5% in 2021, before moderating to 3.1% in 2023.

Several subregions, including south Asia and east Asia, are expected to return to the economic growth rates they experienced before the pandemic, it said.

“The Russian invasion of Ukraine poses the most severe risk to developing Asia’s economic outlook. The war is already affecting economies in the region through sharp increases in prices for commodities such as oil, and has heightened instability in global financial markets,” the ADB said.

“COVID-19 continues to impact many parts of developing Asia, with some economies experiencing new surges in cases,” it said.

China, the region’s largest economy, is forecast to grow by 5.0% this year and 4.8% next year amid continued export strength, while India is expected to grow by 7.5% this fiscal year.

The ADB’s projection for a deceleration in Asian economic growth this year mirrors the World Bank’s projection for a slowdown in east Asia and Pacific countries earlier this week.

The World Bank cut its GDP growth forecast for the region to 5.0% in its April report titled “Braving the Storms” released on 4 April.

Focus article by Nurluqman Suratman