Asian Development Bank forecasts China, India to power strong growth in 2023

 

 

CHINA’S recovery from the pandemic and strong demand in India will drive strong economic growth in Asia this year, the Asian Development Bank said in a report issued Tuesday. The Manila, Philippines-based ADB’s latest update forecasts an expansion of 4.8% in this year and the next, up from 4.2% in 2022. It said inflation would likely cool slightly this year and fall further in 2024. ADB economists said a weekend decision by oil producing nations to cut output, pushing oil prices sharply higher, might reignite inflationary pressures and add to challenges for the region.

The report’s analysis was based on the assumption that Brent crude oil, the pricing basis for international trading, would average USD 88 a barrel this year and USD 90 a barrel next year.

Oil prices remain below that level, with Brent at USD 83 on Monday. But they soared about 5% after Saudi Arabia and other major oil producers said they will cut production by 1.15 million barrels per day from May until the end of the year, on top of a reduction announced last October that infuriated the Biden administration. “It’s certainly plausible that oil prices could go even higher and introduce another challenge for the region,” ADB Chief Economist Albert Park said in a conference call.