ADB Adjusts Inflation and GDP Forecasts for Developing Asia

The Asian Development Bank (ADB) has adjusted its inflation outlook for developing Asia, predicting a slight easing in price pressures for 2024 and 2025. Inflation is now forecasted at 2.8% for 2024, down from the previous 2.9% estimate. For 2025, it’s projected at 2.9%, revised from 3.0%.

Energy inflation has returned to pre-pandemic levels, while food inflation, though declining, remains slightly elevated. Core inflation has eased below pre-pandemic levels.

In Southeast Asia, inflation projections for 2024 and 2025 were revised upwards, influenced by currency depreciations in Laos and Myanmar. Laos’ inflation forecast stands at 25%, the highest in the region.

Despite these adjustments, the ADB maintained its GDP growth forecast for developing Asia at 5.0% for 2024, driven by sustained global electronics demand. Southeast Asia’s GDP growth was revised slightly downwards to 4.5%.

Thailand’s GDP outlook was cut due to subdued government spending and weaker export recovery. Singapore’s forecast was raised, driven by increased demand for electronics and financial services.

The report highlights risks, including rising protectionism, the U.S. presidential election, geopolitical tensions, and China’s troubled property market. These factors could negatively impact developing Asia’s economy.