The Asian Development Bank stated in a report on Wednesday that developing countries in Asia are expected to grow economies at a 5.0% annual pace this year, aided by the robust US economy and the rising demand for computer chips that underpin artificial intelligence.
The 4.9% growth projection from the ADB in April was slightly revised upward in the forecast.
However, the regional lender did issue a warning that, depending on the results of the US presidential election, additional protectionist measures, such as greater taxes on Chinese goods, may be threatened
The report identified a number of encouraging indicators, such as the increasing adoption of artificial intelligence this year leading to a resurgence in computer chip and other advanced electronics exports from Asia. It also mentioned that while food and energy costs are declining, inflation is still excruciatingly high in places like Pakistan, Laos, and Myanmar.
Stronger growth in Taiwan, Hong Kong, Singapore, and South Korea, and to a lesser extent, the Philippines and Thailand, has been fuelled by the recovery in the worldwide demand for semiconductors and related electronics materials and components. This trend is anticipated to continue.
According to data referenced in the paper, the World Semiconductor Trade Statistics predicts that this year’s spending on memory chips essential for AI applications will increase by 77%.
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