The Asian Development Bank (ADB) has raised its economic growth forecast for developing Asia, citing stronger-than-anticipated performance across several key economies. The updated forecast, released today, projects a 6.0% growth for the region in 2024, a significant increase from the previous projection of 5.7% made in September.

The ADB’s latest Asian Development Outlook report highlights the resilience of domestic demand and exports as key drivers behind the upward revision. Several factors contributed to this positive adjustment:

• Stronger Domestic Demand: Consumer spending and investment activity have proven more robust than initially anticipated, particularly in larger economies.
• Resilient Exports: Despite global economic headwinds, exports from developing Asia have held up relatively well, supported by diversification efforts and regional trade linkages.
• Policy Support: Government measures aimed at stimulating economic activity, such as infrastructure spending and targeted fiscal incentives, have also played a crucial role.

While the overall outlook is positive, the ADB acknowledges that challenges remain. These include:

• Global Economic Uncertainty: The ongoing war in Ukraine, rising inflation, and potential interest rate hikes in advanced economies continue to pose risks to the region’s growth prospects.
• Supply Chain Disruptions: Lingering disruptions to global supply chains could hamper production and trade.
• Geopolitical Tensions: Escalating geopolitical tensions in various parts of the world could negatively impact investor sentiment and economic activity.

Despite these challenges, the ADB remains optimistic about the long-term growth potential of developing Asia. The bank emphasizes the importance of continued policy reforms, investments in infrastructure, and regional cooperation to ensure sustainable and inclusive growth.