The Asian Development Bank (ADB) on Wednesday slightly raised the 2024 growth forecast for developing nations in Asia and the Pacific to five percent from 4.9 percent, maintaining its forecast for China at 4.8 percent.
The updated forecast was released in the Asian Development Outlook (ADO) July 2024, a flagship economic report that forecasts economic developments in the Asia-Pacific region.
The growth outlook for developing nations in Asia and the Pacific in 2025 is maintained at 4.9 percent and for China at 4.5 percent, the ADO report said.
The report said that due to the recovery of the service sector and better-than-expected growth of export and industrial activities, China's economic growth in the first quarter of 2024 increased by 5.3 percent year over year, beating previous expectations.
Growth slowed in May as a result of instability in the country's property market.
The report forecast that inflation in developing Asia and the Pacific is set to drop further, with annual inflation predictions for 2024 being lowered from April's 3.2 percent to 2.9 percent, and unchanged for 2025 at 3.0 percent.
Interest rates in the United States and other advanced economies continue to shape the outlook, said the report, adding that uncertainty about the outcome of the U.S. election, elevated geopolitical tensions, trade fragmentation, and weather-related events could hurt growth.
Established in 1966 and headquartered in Manila, the capital of the Philippines, the ADB is a multilateral development bank focusing on the development of the Asia-Pacific Region.
ADB raises growth forecasts for developing Asia-Pacific nations, holds China's steady
