Page 10 - Policy Economic Report - September 2024

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Figure 4: Headline Inflation rate

Source- S&P Global

2. ADB Raises Economic Growth Forecast for Developing Asia and the Pacific

The Asian Development Bank (ADB) has raised its economic growth forecast for developing Asia and the
Pacific this year, amid solid domestic demand and continued strength in exports. ADB has also lowered its
forecast for regional inflation.

The region is forecast to grow by 5.0% this year, compared with a projection of 4.9% in April, according
to Asian Development Outlook (ADO) September 2024. The forecast for next year is maintained at 4.9%.
Inflation in developing Asia and the Pacific is expected to ease further to 2.8% in 2024, compared with a
previous forecast of 3.2%.

The improved economic outlook reflects stronger-than-expected expansions in East Asia, Caucasus and
Central Asia, and the Pacific. Rising global demand for semiconductors, driven in part by the artificial
intelligence boom, is boosting exports; while easing global food prices and the lagged effects of monetary
policy tightening have brought inflation down to near pre-pandemic levels.

Risks to the outlook include a worsening of trade tensions between the United States (US) and the
People’s Republic of China (PRC); further deterioration in the PRC property market; worsening geopolitical
tensions; and the effects of climate change and adverse weather on commodity prices and food and
energy security.

India’s economy is forecast to grow 7.0% in 2024, unchanged from April, amid strong domestic demand
including an increase in government spending.

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