India-China will play an important role in strengthening Asia’s economic growth, read ADB report
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Bangkok : In a report released on Tuesday by the Asian Development Bank (ADB), it has been claimed that India and China will play an important role in strengthening the economic growth of Asia. The ADB report states that strong demand in India and China’s recovery from the pandemic will be factors of strong economic growth in Asia this year. It said that Asia will grow at a rate of 4.8 percent in the year 2023 and 2024, which is more than 4.2 percent in 2022.
Oil prices may rise
ADB said in the recent forecast that there is a possibility of a decrease in inflation this year and it will be even less in 2024. However, economists at the institute say that the decision to reduce production by oil-producing countries may lead to a rise in oil prices, which will further increase inflationary pressure, which is going to be challenging for the region.
Saudi Arabia to cut oil production
The report’s analysis is based on the assumption that Brent crude oil will remain at $88 per barrel this year and $90 per barrel next year. Oil prices remained below this level, at $83 a barrel on Monday, but prices rose 5 percent after major oil producing countries, including Saudi Arabia, announced production cuts.
Oil price will pose a challenge
Albert Park, chief economist at ADB, said oil prices could rise further, which would pose another challenge for the sector. He said inflation in Asia would depend more on rising demand for services such as tourism, rather than goods. Another factor driving up prices will be China’s shift from slow growth to faster growth as Kovid-19 restrictions are lifted there.
Chinese economy will grow at the rate of 5 percent
ADB estimates that China’s economy will grow at a rate of 5 percent in the year 2023 and 4.5 percent in the year 2024. In the year 2022, it was three percent. However, India’s economy is estimated to grow at a rate of 6.4 percent in the year 2023. In 2021 this figure was 9.1 percent and in 2022 it was 6.8 percent.
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