The latest release from the Asia Development Bank (ADB) presents an outlook on the projected economic growth in Southeast Asia. It is estimated that the economic growth in the region will reach 4.7% in 2023, which is a decline from the growth recorded last year at 5.6%. How about Indonesia?
However, it is expected to rebound to 5% in 2024. ADB attributes this sustainable recovery largely to the reopening of economic activities in the sub-region, as stated in their report titled “Asian Development Outlook (ADO) April 2023”, released on Tuesday, April 4, 2023.
ADB further highlights that countries whose gross domestic product (GDP) is significantly contributed by the tourism sector, such as Cambodia, the Philippines, and Thailand, will benefit from the resumption of activities in China.
The economic growth in Southeast Asia is being driven by the reopening of economies and private consumption, as well as stronger investment, which is accelerating growth in Indonesia, Malaysia, and Thailand.
In terms of Indonesia’s economic outlook, ADB projects a growth rate of 4.8% in 2023, with a further increase to 5% in 2024. However, compared to other ASEAN countries, Indonesia’s projected economic growth is lower than the estimated growth of 6% for the Philippines and 6.5% for Vietnam.
On the other hand, Indonesia’s economic outlook is more favorable when compared to Malaysia and Singapore. Malaysia’s economic outlook for 2023 is projected to reach 4.7%, while Singapore’s is estimated to be 2%. ADB also provides projections for other ASEAN countries, including Brunei Darussalam, Cambodia, Laos, Myanmar, the Philippines, Singapore, Thailand, and Vietnam, for both 2023 and 2024.
- Brunei Darussalam is expected to grow by 2.5% in 2023 and 2.8% in 2024.
- Cambodia’s economic growth is projected at 5.5% in 2023 and 6% in 2024.
- Laos is estimated to grow by 4% in both 2023 and 2024.
- Malaysia’s economy is projected to grow by 4.7% in 2023 and 4.9% in 2024.
- Myanmar’s economy is expected to grow by 2.8% in 2023 and 3.2% in 2024.
- The Philippines’ economy is projected to grow by 6% in 2023 and 6.2% in 2024.
- Singapore’s economy is estimated to grow by 2% in 2023 and 3% in 2024.
- Thailand’s economy is projected to grow by 3.3% in 2023 and 3.7% in 2024.
- Vietnam’s economy is expected to grow by 6.5% in 2023 and 6.8% in 2024.
In conclusion, the ADB’s outlook on economic growth in Southeast Asia presents a mixed picture with varying growth projections for different countries in the region.
While some countries are expected to experience a rebound in economic growth in 2024, others may face challenges in achieving significant growth rates in the coming years.
These projections provide valuable insights for policymakers and stakeholders to plan and strategize for the economic development of their respective countries in the ASEAN region.
So, it’s crucial to keep track of the latest economic trends and projections to make informed decisions for the future.
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