The reopening of China will sustain gross domestic product (GDP) growth across the Asian region, which may outdo its global peers, HSBC Asia Pacific Chief Investment Officer Fan Cheuk Wan said on Tuesday.
According to Wan, GDP growth in Asia and Japan could accelerate to 4.3 percent.
Outside the region, major economies are expected to see a considerable slowdown due to hawkish central bank tightening.
“In 2023, we believe Asia will outperform its global peers, mainly driven by the faster than expected full reopening of the Chinese economy and with the latest policy pivot taken by Beijing to end the zero-COVID policy. This is going to drive the growth of the Chinese economy this year and this is going to benefit the overall Asian economy,” Wan said.
Inflation eased in some Asian countries, according to most recent economic data. This will allow central banks to focus on stabilizing growth.
Meanwhile, in the US, Wan says that the Federal Reserve is expected to raise the interest by another 50 basis points before stopping for the rest of the year.
“So we expect Asia will be the only region that is projected to deliver growth acceleration in 2023,” she added.
