Overview

Asia and the Pacific is continuing its solid economic recovery thanks to healthy domestic demand, stable financial conditions and a resilient services sector, while inflation in the region is receding. This update revises slightly down the region's growth forecast for this year to 4.7% on slower expansions in East Asia, South Asia, and Southeast Asia. The growth forecast for 2024 is unchanged at 4.8%. With price pressures in the region remaining in check, the inflation forecast is revised down to 3.6% for 2023 but is revised up slightly to 3.5% for 2024. Importantly, headline and core inflation seem to have peaked for the region, but there is some variation across economies.

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