Jakarta, CNBC Indonesia – Two countries in the Asian region, India and Vietnam, are expected to record positive economic growth in 2023, even the highest compared to other countries in Asia.

The World Bank, in its latest Global Economic Prospects report, January 2023 edition, estimates that the Indian economy will grow by 6.6% in 2023, while Vietnam will grow by 6.3%.

Looser monetary policy and an increase in exports are expected to maintain the economic engine of both countries.

India's economic growth forecast is actually below the June forecast of 7.1%.

It is estimated that the economic growth of India, located in South Asia, will be lower in 2023 than the estimated economic growth in 2023, which is expected to grow at 6.9%.

For Vietnam, which is located in Southeast Asia, the forecast growth in 2023 is also lower than in 2022, which is estimated at 7.2%.

Even though they are declining, both countries are still Asian countries and can record a value of over 6%. The rest should only be able to grow by 1-5%.

According to the World Bank report, Vietnam is also one of three countries in ASEAN to record growth of over 7% in 2022. In addition to Vietnam, there are the Philippines and Malaysia, which are estimated to see growth of 7.2% and 7.8% respectively.

“Vietnam will benefit from an increase in household consumption and very strong export growth,” said a World Bank report quoted on Monday (January 16, 2023).

According to Vietnam's statistical data, Blue Dragon Land's exports will reach $342.19 billion in 2022, an increase compared to the previous year which was recorded at $336.31 billion.

If Vietnam will benefit from exports, the World Bank estimates that the Indian economy will benefit from loose monetary policy and large investments.

India's central bank raised its key interest rate by 225 basis points to 6.25% in 2022 to reduce outflows and ensure stability in the rupee exchange rate.

“India's monetary and fiscal policies are likely to be slightly weaker compared to other countries. This will support economic recovery and private investment growth,” the World Bank wrote.

How about Indonesia?

The Indonesian economy is estimated to grow by only 4.8% in 2023. This forecast is much lower than June 2022, which was around 5.3%.

Among Asian countries, growth still lags far behind India and Vietnam. Indonesia also still lags behind the Philippines, Mongolia, Bangladesh and Cambodia, whose growth is expected to exceed 5%.

Among major Asian countries, Indonesia ranks seventh in Asia.

Meanwhile, Saudi Arabia, which posted excellent growth last year, is estimated to only be able to achieve 3.7% this year. In fact, it is estimated that the desert land can grow by 8.3% in 2022. This growth is the second highest in Asia after Iraq (8.7%).

China, the engine of Asian growth, is expected to grow 4.3% in 2023, 0.9% less than forecast in June last year. However, China's growth this year is higher than in 2022, which is estimated to reach only 2.7%.

(stamp/stamp)