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Asia-Pacific still faces challenges but resilient: ADB

0 Comment(s)Print E-mail Xinhua, September 26, 2024
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A customer buys bread at a supermarket in Quezon City, the Philippines on Sept. 25, 2024. [Photo/Xinhua]

Asia and the Pacific still faces challenges but remains resilient, according to an updated Asian Development Bank (ADB) report released on Wednesday.

The Asian Development Outlook September 2024 maintained its gross domestic product (GDP) forecast for the Asia-Pacific region at 5 percent, unchanged from its July forecast. The growth outlook for next year was maintained at 4.9 percent.

Inflation in the region was forecast at 2.8 percent for 2024, while inflation for 2025 was 2.9 percent, the report showed.

The report revises the growth forecast for 2024 in East Asia to 4.6 percent.

The outlook for growth in the Caucasus and Central Asia was better than expected at 4.7 percent, while the growth forecast for the Pacific was revised upward to 3.4 percent, driven by an increase in tourist arrivals.

In South Asia, the growth outlook for this year was unchanged at 6.3 percent, while a decline in public investments and slower-than-expected export recovery imply that the growth forecast for Southeast Asia slightly drops to 4.5 percent.

ADB Chief Economist Albert Park said growth in developing Asia remained robust during the first half of 2024, fueled by solid domestic demand and export growth.

"We expect growth in developing Asia will remain robust this year and next," Park told an online news conference.

Park said that inflation has continued to moderate, creating more space for monetary policy easing. However, he said that disinflation remains uneven.

Policymakers in the region need to stay vigilant to keep growth and inflation on track, Park said, pointing out such downside risks as a rise in protectionism, worsening geopolitical tensions and adverse weather conditions.

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