Asia's economy to grow 5% faster than the developed countries: report

Amid the recent banking stress in U.S. and Europe, a report by Morgan Stanley says that Asia's economic growth could outpace developed countries' by as much as 5% by end-2023.

The report further added that after the relaxation of its COVID curbs, China will also be a major contributor in boosting Asia's economic performance.

According to economists, China's relaxation of its harsh COVID lockdown has helped its economy in gaining some momentum. Beijing's reopening will not only benefit the country but also to the rest of the region. Other than China, Asia's mega economies-Japan, India, and Indonesia, have their own economy-specific factors driving domestic demand.

In a bid to control the rising inflation, the US Federal Reserve and European Central Bank hiked rates by 474 bps and 350 bps, respectively. West is experiencing one of its most aggressive rate hikes. In contrast, the rate hike cycle in Asia is considered to be subdued.