Growth in developing Asia and the Pacific is expected to remain resilient, propelled by strong domestic demand, improving semiconductor exports, and the ongoing recovery in tourism.
Regional inflation will moderate further, as global food and fuel prices stabilize. However, several risks warrant attention. Escalating conflicts and geopolitical tensions may disrupt supply chains and impact commodity prices. Uncertainty surrounding US monetary policy, potential further weakness in the property market in the People's Republic of China, and extreme weather events could present challenges for the region. Policymakers should intensify efforts to bolster resilience by fostering trade, cross-border investment, and commodity supply networks.
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