ADB cuts Southeast Asia’s growth outlook due to Omicron

The Asian Development Bank (ADB) has trimmed its economic outlook for Southeast Asia this year mainly due to the spread of the Omicron variant in early 2022. From 5.1%, the ADB cut its full-year gross domestic product (GDP) forecast to 4.9%. Growth is expected to pick up to 5.2% in 2023 as recoveries gain momentum in most of the sub-region's economies on the back of increased Covid-19 vaccination coverage and the easing of mobility restrictions. Southeast Asia's outlook is slightly under the overall projection for developing Asia, which excludes the advanced economies of Hong Kong, Taiwan, South Korea, and Singapore. These economies are expected to post growth of 5.4% in 2022 and 5.5% in 2023.