(Photo: Reuters)

The Asian Development Outlook December 2023 released on Wednesday says the regional economy is expected to grow 4.9% this year, compared with a previous forecast in September of 4.7%. The outlook for next year is forecast to be maintained at 4.8%.

The ADB said that economic growth of 46 regional economies, excluding Japan, Australia, and New Zealand, is attributed to the leverage of policies to stimulate domestic consumption, the recovery of tourism, and the sharp increase in remittances.

However, the ADB forecasts that growth prospects in sub-regions are uneven. East Asia and South Asia are both expected to have faster growth rates at 4.7% and 5.7% this year. Meanwhile, Southeast Asia is forecast to grow slowly at 4.3% this year, lower than the previous forecast of 4.6%.