East & South Asia Economic Forecast

Economic Snapshot for East & South Asia

April 27, 2022

GDP growth to moderate in 2022

Regional GDP growth is expected to moderate notably this year due to a fading base effect. That said, domestic demand should strengthen, supported by upbeat household spending amid tighter labor markets and ongoing stimulus measures. Pandemic-related uncertainty, volatile commodity prices and some ongoing turmoil in China’s property sector cloud the outlook.

Inflation to average higher compared to 2021

Regional inflation rose to 1.8% in March from 1.2% in February. Price pressures increased in China, while inflation in Korea also edged higher. Inflation should average higher this year compared to 2021, likely due to tighter labor markets and increased household spending. Prolonged supply chain disruptions and elevated energy prices pose further upside risks.




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