ADB report slightly raised its 2024 growth forecast for developing Asia and the Pacific to 5 per cent from 4.9 per cent, reflecting the region s accelerated growth in the first quarter of this year. The growth outlook for 2025 remains at 4.9 per cent.

According to the report, the debt volume is expected to decrease from 77% to 70% of the country’s GDP.

It also says that 62% of Pakistan’s revenue will be spent on debt repayment in the current fiscal year. Additionally, the report predicts that inflation will remain high in Pakistan in the current fiscal year.

The report highlights the need for Pakistan to address its debt and inflation issues to achieve sustainable economic growth. The report provides valuable insights into Pakistan’s economic outlook and offers recommendations for improvement.

The ADB attributed the robust growth to resilient domestic demand and strong export performance, particularly in the electronics sector.

The Manila-based bank increased East Asia s 2024 growth projection to 4.6 per cent, driven by strong exports of semiconductors and other goods amid the artificial intelligence boom. The 2025 projection for East Asia is maintained at 4.2 per cent.

The growth forecast for Southeast Asia remains unchanged at 4.6 per cent for 2024 and 4.7 per cent for 2025, while the Pacific region s forecast is steady at 3.3 per cent for 2024 and 4 per cent for 2025.

The outlook for the Caucasus and Central Asia has been revised upward to 4.5 per cent from 4.3 per cent for 2024, and to 5.1 per cent from 5 per cent for 2025.

Headline inflation in developing Asia is projected to ease further from 3.3 per cent last year to 2.9 per cent this year, with expected stabilising at 3.0 per cent in 2025.