ASIATODAY.ID, JAKARTA – The Asian Development Bank (ADB) revised upward economic growth in the Asia Pacific region, in line with increasing regional exports and complementing domestic demand which is still strong.
Based on the Asian Development Outlook (ADO) released Wednesday, July 17 2024, ADB increased its economic growth projection this year to 5.0% in 2024, from the previous projection of 4.9%. Meanwhile, the growth estimate for next year is maintained at 4.9%. Then, for inflation, the ADB estimates it will slow to 2.9% in 2024 amid easing pressure on global food prices and the continued influence of high interest rates.
Global demand for electronic goods, especially semiconductors for high-tech and artificial intelligence applications, is increasing exports from a number of Asian economies.
ADB Chief Economist Albert Park said that most countries in Asia and the Pacific experienced faster economic growth compared to the second half of last year.
“The economic fundamentals of this region are still strong, but policymakers still need to pay attention to a number of risks that could impact these projections, ranging from uncertainty regarding election results in large economies, to interest rate decisions and geopolitical tensions,” he explained, as quoted in the statement. official, Wednesday, July 17 2024.
Even though inflation in the region has slowed to pre-pandemic levels, price pressures are still quite high in a number of countries. Food price inflation remains high in South Asia, Southeast Asia and the Pacific, partly due to bad weather and food export restrictions imposed by several countries.
The growth forecast for China, the region’s largest economy, is maintained at 4.8% in 2024. The continued stronger-than-expected recovery in services consumption and exports, as well as industrial activity, is driving growth despite the difficulties. The government is also introducing several additional policy measures in May 2024 to support the property market.
The fastest growing economy in the region, India was also unchanged at 7% for fiscal 2024. The industrial sector is projected to grow steadily and agriculture is expected to pick up again amid a forecast monsoon with higher than normal rainfall. Investment demand remains strong, led by public investment. For Indonesia, ADB still maintains its economic growth projection for this year and next year at 5%. Inflation is also the same as economic projections at 2.8% for 2024 and 2025.
For Southeast Asia, the growth forecast is maintained at 4.6% in 2024 amid strong improvement in both domestic and external demand. In the Pacific, projected growth for 2024 remains at 3.3%, driven by tourism and infrastructure spending. This coincides with the revival of mining activities in Papua New Guinea. (AT Network)
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