East & South Asia Economic Forecast

Economic Snapshot for East & South Asia

October 21, 2021

Economic outlook for 2022 moderates

Regional GDP growth should moderate slightly in 2022 due to a less favorable base effect. That said, ongoing fiscal and monetary stimulus should support output, while less volatile U.S. foreign policy under President Biden bodes well for trade. Covid-19-related uncertainty clouds the outlook, however.

Inflation to gain momentum markedly compared to 2020

Regional inflation was stable at August’s 1.0% in September. Price pressures eased slightly in China and Korea, while inflation ticked up in Taiwan. Inflation is expected to moderate in 2021, but should gain momentum next year as recovering output boost price pressures.

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