Unlike in the U.S. and Europe, growth in Asia-Pacific is likely to pick up slightly--to 4.3% in 2023 from 4.1% in 2022 as China begins easing on COVID lockdowns. We now expect Japan will follow other Asia-Pacific central banks (China being the exception) to hike policy rates. Financing conditions may tighten in 2023. Despite commodity prices softening from weaker demand, Asia-Pacific's weak currencies will keep imported prices high, with a flow-on effect on inflation. An easing of COVID containment policies by China is critical for its economic growth recovery, as the impact of support initiatives are likely to be limited. Notwithstanding the soft economic rebound, global credit headwinds and structural risks (including climate and cyber) indicate still-high downside risks.