ADB Lowers Growth Forecast for Southeast Asia in Current Year
The latest report said weaker growth in Myanmar, Thailand, and Timor-Leste drags the region's growth forecast for 2024.
Singapore will benefit from strong services aided by an upturn in global electronics in 2024, the report noted.
Brunei, Cambodia, Indonesia, Malaysia, the Philippines, and Vietnam remain on track to meet their growth forecasts this year and next, supported by robust domestic and external demand, it added.
Compared to its April forecast, the report said growth projections are easing in Thailand, Myanmar, and Timor-Leste in 2024, including Laos in 2025, amid political and economic uncertainties.
Nonetheless, the report said, robust consumption, increased investment, the continued tourism recovery, and a rebound in electronic exports will support the region's growth this year and next.
"In most economies, growth has been helped as inflation moderated to within central bank target ranges," the report said, mentioning that scope for monetary policy easing given the U.S. Federal Reserve's rate cut in September "will further benefit consumers and businesses."
Still, the report warned that heightened geopolitical tensions could stall global trade again and severe weather disturbances could also disrupt growth momentum across the region.
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