MANILA: The Asian Development Bank (ADB) has revised Southeast Asia's 2024 GDP growth forecast to 4.5 per cent from the 4.6 per cent projected in April, citing ongoing economic challenges, reported Xinhua.
However, the ADB has kept its 2025 growth forecast unchanged at 4.7 per cent, reflecting cautious optimism for the region's economic recovery, as detailed in the latest Asian Development Outlook report released Wednesday.
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 US 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 disrupt growth momentum across the region.