Asia expects 4.9% growth despite China’s slowdown – ADB

The Asian Development Bank (ADB) projects a promising 4.9 per cent growth rate for the region’s economy in both 2024 and 2025, BNN Bloomberg reported on Sunday.

This optimistic outlook is further bolstered by a predicted decline in inflation. The report estimates inflation dipping slightly to 3.2 per cent in 2024 and three per cent in 2025, down from an estimated 3.3 per cent in 2023.

However, the report also highlights a potential drag on regional growth – China’s slowing economy. The real estate sector and domestic demand in China are expected to remain weak, contributing to a lower overall growth trajectory for the country.

The report also acknowledges key risks to Asia’s economic outlook. Geopolitical tensions, the Federal Reserve’s monetary policy decisions in the US, and a further decline in China’s property market are all identified as potential threats.

Additionally, food price inflation remains a concern, with weather events impacting crop yields and export restrictions hindering trade.