The external resilience of Asian economies, reconfiguration of industrial chain, climate change responses and implementation of regional trade agreements are the four critical issues that merit significant attention, the non-profit said in a report.

The Boao Forum for Asia, initiated by 25 Asian countries and Australia, is a non-profit organisation that hosts high-level forums for leaders from government, business and academia in Asia and other continents to share their vision on the most pressing issues in this region and the world at large.

Though with an updated forecast, global growth in 2023 is expected to remain sluggish, heavily weighing on the external demand for Asian economies, it said.

The global inflation rate is expected to decrease from 8.8 per cent in 2022 to 6.6 per cent in 2023.

The report estimates that the weighted real gross domestic product (GDP) growth rate of Asia this year would be 4.5 per cent—an increase from 4.2 per cent in 2022, making it a standout performer in view of the global economic slowdown.

However, the relatively weak overall growth momentum of emerging markets and developing economies need attention, it noted. Insufficient investment may also be a drag on the growth of emerging economies.

The risk of stagnation in emerging markets and developing economies catching up with developed countries in terms of per capita incomes is looming over, it said.

In 2023, inflation pressures in Asia are expected to ease, but the factors that push inflation up and down may coexist. The decline in commodity prices from their peak will help alleviate imported inflation pressure, the report said.

The increasing stability of the exchange rates of major Asian currencies will help reduce imported inflation pressure.

Asia is playing a more proactive and leading role in global macroeconomic policy coordination as well, it added.

Fibre2Fashion News Desk (DS)