Abstract
We are seeing a recovery in Asia’s economic growth as industrial activity and services reactivate and consumption rebounds thanks to a relaxation of COVID-19-related restrictions and the reopening of borders in many countries—with the notable exception of China. GDP growth in the region is expected to soften gradually over our forecast period of 2024–35, though it will remain above the global average. Developing Asia will be the main driver of regional growth. There is a caveat, however: downside risks are rising due to a slowdown in external demand, rising inflationary pressures, and the deterioration of the geopolitical environment.