The Asian Development Bank today estimated that China's post-pandemic reopening will boost economic growth to 4.8 percent among developing countries in the Asia-Pacific region by 2023.

That figure is higher than the 4.2% growth rate achieved the previous year. The Asian Development Bank has estimated that rising consumption and tourism will help countries resist inflation

The Manila-based entity stressed that China’s pickup in economic activity after the dismantling of the ‘zero covid’ policy “is the main factor for improving the region’s growth prospects,” especially among developing countries.

The world’s second largest economy will, in turn, experience a remarkable economic acceleration in 2023, the development bank pointed out. The Chinese economy should grow 5%, in line with the goals set by Beijing, and well above the 3% rate recorded in 2022, it noted.

In 2024, the Chinese economy should grow 4.5%, it pointed out.

The institution also highlighted the powerful expansion of the Indian economy as one of the main catalysts for regional growth. The Indian economy is expected to grow 6.4% in 2023 and 6.7% in 2024.

However, the possibility of “new peaks in inflation” triggered by the war in Ukraine and consequent increases in interest rates pose risks to global financial stability, as “evidenced by recent banking sector turbulence in the US and Europe,” the multilateral institution warned.

Emerging economies in Southeast Asia (all except Singapore) will also experience strong economic growth this year and next, as the tourism industry benefits from the arrival of visitors from China following the lifting of restrictions on mobility, the bank pointed out.

In particular, Vietnam and the Philippines will lead economic growth in South Asia, the development bank predicted, pointing to an expansion of 6.5 percent in 2023 and 6.8 percent in 2024 for Vietnam, and 6 percent in 2023 and 6.2 percent in 2024 for the Philippines.

Increased consumption, investment and tourism will offset the impact of persistent inflation, in the Asia — Pacific region, where food and energy prices continue to rise, encouraging tight monetary policies.

Source: Notícias ao Minuto