China's rapid recovery has brightened the regional and global economic outlook, according to a new Asian Development Bank report released on Tuesday.

The Asian Development Outlook 2023, the ADB's flagship annual economic publication, expected China's gross domestic product to rebound to 5 percent this year and to 4.5 percent in 2024.

The report also forecasts that developing Asia's GDP will grow by 4.8 percent this year and next year, saying the growth of this region remains resilient.

"China's reopening has lifted the region's outlook," said the report, adding that it will support growth in regional exporters of commodities, manufactured intermediates and final goods; it could lead to a stronger pick-up in growth, boosting external demand for economies in the rest of the region.

China's reopening will "further boost regional tourism and provide a lift to trade," ADB President Masatsugu Asakawa said.

Meanwhile, the ADB warns of "multiple challenges" that may have a negative impact on the growth.

The report said that tightening global financial conditions has heightened financial stability risks, as evidenced by emerging banking sector vulnerabilities in the United States and Europe.

The uncertainty over the Russia-Ukraine conflict persists; an escalation could rekindle inflation pressures and sharpen food security challenges, the report adds.

The ADB also projected inflation to moderate, gradually moving closer to pre-pandemic levels in the region. It expected inflation to decelerate to 4.2 percent this year, easing further to 3.3 percent in 2024.

ADB's Chief Economist Albert Park said South Asia is expected to grow faster than other regions. He added that growth in East Asia and Southeast Asia is benefiting from increased domestic demand and growth in the Pacific is gaining from returning tourists.

Park warned that "an array of immediate and emerging challenges" could still hold back the region's recovery.

"Governments must continue supporting multilateralism and lean against the risks of global fracturing. And Asia must continue its strong regional cooperation to weather these uncertain environments," he said.