Growth will continue to be strong in FY23, edging up to 7.1 percent, but is expected to remain below the pre-pandemic levels due to a slow-down in industrialized economies triggered by disruptions from the Russian invasion of Ukraine, the Manila-based lender said in its latest Asian Development Outlook (ADO 2022) on Wednesday.
The ADB projects the headline inflation rate to increase to 6 percent in FY2022, from 5.6 percent in the previous year, as price pressures are increasing due to rising global food and fuel prices along with the implementation of stimulus measures.
The headline inflation rate steadily climbed from 5.4 percent in July 2021, the first month of the current fiscal year, to 6.1 percent in December 2021, lifted by rising global prices for food and commodities, especially oil.
The inflation rate in FY2023 is forecast to dip to 5.9 percent on softer global food and fuel prices, the ADB said.
