The outlook for Asia’s economies is mixed in May 2023. Here are some key points from the various sources:
- The IMF predicted growth for Asia and the Pacific at 4% this year and 4.3% in 2023, with both below the 5.5% average over the last two decades
- The World Bank forecasted growth for the region as a whole to slow to 3.2% this year from 7.2% in 2021, before accelerating to 4.6% next year
- Most developing East Asia and Pacific economies are growing, but slowing global growth, elevated commodity prices, and tightening financial conditions will affect economies in the region in 2023
- Despite the challenges, Asia remains a relative bright spot in an increasingly dimming global economy.
- Southeast Asia will likely enjoy a strong year ahead, with Vietnam expanding from being at the center of supply chain diversification efforts
- China and India alone are expected to contribute more than half of Asia-Pacific’s global growth this year
Overall, while Asia’s growth is expected to slow down, it is still projected to outpace other regions in the world. Southeast Asia, in particular, is expected to enjoy a strong year ahead. However, the region is not immune to the challenges of slowing global growth, elevated commodity prices, and tightening financial conditions.