Asian Development Bank raises growth forecast for region, but warns of risks from trade sanctions
Developing economies in
The forecast was revised upward slightly from the ADB's April estimate of 4.9% growth.
However, the regional lender warned of the potential threat of more protectionist measures, such as higher tariffs on exports from
The report highlighted several positive trends, including a rebound in exports from
The upturn in global demand for semiconductors and related electronics materials and components has helped drive stronger growth in
The report cited data from World Semiconductor Trade Statistics projecting that spending on memory chips, vital for AI applications, will expand 77% this year.
Other types of exports, especially autos from
The
“The election could result in higher blanket tariffs by the
Former President
“It's good to see. Certainly there's room for monetary policy expansion,” he told reporters in a briefing before the report's release. “Whether that will work remains to be seen.”
Among other positive developments, the report noted that energy inflation has returned to levels seen before the COVID-19 pandemic began in 2020. That alleviates pressures on some economies that depend heavily on imports of oil and other fuels, such as
Food inflation is still slightly higher, but falling. Rice prices fell by 12% to
They are expected to fall further, as rice harvests are projected to hit record levels in the 2024-2025 growing year, and prices for wheat and maize also have declined. Crops are likely to benefit from the La Nina climate phenomenon, which could bring beneficial higher rainfall to some regions though it also could cause destructive flooding in others.
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