The Asian Development Bank stated on Wednesday that developing Asia is projected to close the year on a more positive note, with growth in the area predicted to be stronger than previously believed mostly because of a resurgence in China’s economy.

The Asian Development Bank (ADB) maintained its 4.8% growth outlook for developing Asia in 2023 but increased its forecast to 4.9% from 4.7% in September.

The world’s second-largest economy, China, is expected to grow by 4.5% next year, according to the ADB, which revised up its growth estimate from 4.9% to 5.2%.

China’s economy expanded 4.9% in the third quarter, faster than forecast. In September, consumer and industrial activity also surprised positively, helped by a flurry of policy changes that boosted a shaky recovery.

Stronger remittances, increasing domestic consumption, and rebounding tourism, according to the ADB, are supporting economic activity in the Asia-Pacific area, which includes 46 economies but does not include Japan, Australia, or New Zealand.

The sub-regions’ growth prospects were mixed. East Asia was expected to develop at a quicker rate of 4.7% this year compared to the ADB’s 4.4% prediction in September, while Southeast Asia was predicted to grow at a slower rate of 4.3% compared to the previous forecast of 4.6%.

India’s economy was predicted to grow at a quicker rate of 6.7% this year, while South Asia was predicted to register stronger growth of 5.7% this year from 5.4% last year.

As to the ADB’s earlier prediction, inflation in developing Asia was expected to decrease to 3.5% this year and then rise to 3.6% in 2024.

(Adapted from Nikkei.com)

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