ADB cuts South-east Asia growth forecast for 2023 on weak manufacturing demand

SOUTH-east Asia could see softer economic growth this year, as the Asian Development Bank (ADB) downgraded its 2023 growth projection for the region slightly to 4.6 per cent, from 4.7 per cent previously.

Growth is expected to pick up to 4.9 per cent in 2024, a downward revision from ADB’s earlier projection of 5 per cent, as “weaker global demand for manufactured exports has slowed growth even as domestic demand remained intact”, ADB said in its latest Asian Development Outlook report on Wednesday (Jul 19).

Maybank economist Chua Hak Bin was more cautious in his growth outlook for 2023, tipping the Asean-6 economies to grow by 4.2 per cent in 2023. But he was more upbeat in his 2024 expectations, and said the region would grow 4.9 per cent next year.