The Strategist

ADB worsens GDP growth forecast for developing Asia in 2023 to 4.7%

09/20/2023 - 10:45

The Asian Development Bank (ADB) has downgraded its prediction for 2023 economic growth in rising Asia-Pacific nations from 4.8% to 4.7%.

In a statement, the ADB stated that its forecast for GDP growth in the next year remained at 4.8%.

In these states, consumer prices are anticipated to rise by 3.6% this year compared to the prior prediction of 4.2%, mainly caused by China's low inflation rate as well as the stabilization of food and energy costs.

The expected inflation rate for 2024 is 3.5%.

At that, the regional picture is being negatively impacted by China's real estate sector's deterioration. The risk of financial instability has increased due to high global interest rates. The bank's analysts predict that export limits and the heightened danger of droughts and floods brought on by El Nino might push up food prices once more and threaten food security.