ADB holds growth forecasts for Southeast Asia steady

The Asian Development Bank (ADB) maintained its 2024 and 2025 growth projections for Southeast Asia, citing a “solid improvement” in domestic and external demand. The region, including the 10 ASEAN nations and Timor-Leste, is expected to see growth rates of 4.6% and 4.7%, respectively, up from 4.1% last year. Key growth drivers include stable consumption supported by level prices and increased tourism, alongside a recovery in exports and higher infrastructure spending in larger economies. This year, growth forecasts for major ASEAN economies like the Philippines and Vietnam remain at 6%, Indonesia at 5%, Malaysia at 4.5%, Thailand at 2.6%, and Singapore at 2.4%. Inflation in Southeast Asia is expected to stabilise at 3.2% in 2024 and 3% in 2025, with Thailand’s forecast revised downwards due to lower food prices.