The Asian Development Bank (ADB) has released their latest update predicting strong economic growth in China and India in the coming year up to 2023. This forecast is based on expected acceleration of China’s recovery from the pandemic as well as increased demand in India pushing the ADB’s regional expansion at a rate of 4.8%. Whilst inflation is expected to cool slightly this year and continue to drop in 2024, the weekend decision by oil producing nations to cut output and push prices higher, may potentially introduce another challenge.
China is anticipated to experience 5% growth this year, followed by 4.5% next year. India is expected to grow at a slower 6.4% this year which is one of the fastest expansions for a major regional economy. Vietnam meanwhile is predicted to have 6.5% growth this year but that is still above the average for Southeast Asia as a whole. Any downturn in demand for computer chips may hurt exporters such as Taiwan, Singapore and South Korea, as established by the ADB report.
The ADB is a multilateral development finance institution established in 1966 and playing a key role in programmes to foster economic development. Over its extensive period it has been dedicated to reduce poverty and alleviate the effects of poverty within Asian countries. It works closely with both government and non government organisations, initiating projects towards the primary goal of improving living standards.
Albert Park, ADB Chief Economist, helped ascertain the data and make more precise forecasts in the report. Mr.Park is a well-respected figure in the field, currently a professor of practice at the Hong Kong University of Science and Technology, School of Business & Management. Also gaining vast experience in the international macroeconomy, Mr.Park is a former Senior Economist at the World Bank, and is highly qualified in the field of macroeconomics, econometrics, and monetary economics. His insight is sure to further guarantee the accuracy of the ADB’s report.
Overall, the ADB’s report presents potential growth in China and India as a major factor driving Asia’s economic growth, noting that any potential implications from rising oil prices, as a direct result from the weekend’s decision in output cuts, could create yet another hurdle. As a result, the ADB’s latest update still needs to remain mindful of the developing forecast for the year ahead.