Asian Economies Forecasted to grow 4.7%

ADB: Korean Economy Expected to Grow 1.3% in 2023,

Asian Economies Forecasted to grow 4.7%

– Asian Development Outlook, September 2023 –

The Asian Development Bank (ADB) released the Asian Development Outlook1 (ADO) September 2023 on September 20.

The ADB revised down Asia’s growth outlook for 2023 by 0.1%p compared with the July forecast, based on a slowdown in China’s growth due to its housing slump and declining global demand. The growth forecast for 2024 stood at 4.8%, which is revised up by 0.1%p from the previous prediction.

In addition, inflation forecasts for the Asian economies remained unchanged at 3.6% for 2023, while they are revised up by 0.1%p to 3.5% for 2024.

The report cites the real estate slump in China, worsening food security due to El Nino, monetary policies in major advanced economies, and financial instability as future risk factors in Asia.

With regard to Korea, ADB predicts its growth rate to be 1.3% for 2023 and 2.2% for 2024, the same as the bank’s earlier forecast in July, as export growth serves as upside factors and high interest rates restricting private consumptions and investments act as downside risks.

Korea’s inflation forecast is revised down by 0.2%p to 3.3% for 2023 reflecting the moderate inflation rate in July (2.3%), and by 0.3%p to 2.2% for 2024.