Asian economy estimated to rise 4.5% in 2024: Report

27 Mar '24

2 min read

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Insights

Asia's economy is projected to grow by 4.5 per cent in 2024, with a significant contribution to global GDP at 49 per cent.
Trade and investment recovery, alongside digital trade growth and key trade agreements, are expected to bolster the economy, despite challenges in employment and income growth.
Inflation pressures are forecast to ease.

Asia’s economy is estimated to grow about 4.5 per cent in 2024, according to the latest Asian Economic Outlook and Integration Progress report by the Boao Forum for Asia (BFA). This anticipated acceleration in economic activity not only surpasses the previous year's performance but also underscores Asia's critical contribution to worldwide economic growth.

Amidst a backdrop of external economic adversities, Asia is poised to sustain its vibrant growth trajectory, buoyed by robust consumer spending and dynamic fiscal strategies. The report delineates varied growth prospects across the region: East Asia is projected to maintain its current growth pace at 4.3 per cent; South Asia is poised for an uptick from 5.4 per cent in 2023 to 5.8 per cent, reaffirming its status as the fastest-expanding region within Asia; Central Asia, however, might see a slight dip in growth to 4.3 per cent; and West Asia is anticipated to experience a significant growth surge to 3.5 per cent.

"In terms of purchasing power parity, Asia's economic aggregate is expected to account for 49 per cent of global GDP in 2024, marking a 0.5 percentage points increase from 2023," said Chinese media agencies quoting the report.

Trade and investment in Asia are also expected to recover from the downtrend observed in 2023. The report attributes this positive shift to several key factors including the burgeoning sector of digital trade,, progressive economic and trade agreements such as the Regional Comprehensive Economic Partnership, and the beneficial impact of the restructuring within Asian industrial and value chains on regional economic cohesion.

However, the employment landscape presents a mixed picture, with the report cautioning against subdued job growth in densely populated regions like East and South Asia, potentially impacting the continent's overall employment figures. Despite these challenges, Asia's unemployment rate is forecast to stay below the global average.

Income growth in Asia is facing ‘considerable pressure’ with disparities across sectors likely to widen domestic income inequality. Nevertheless, an observed increase in the total weekly working hours for full-time positions in most Asian locales offers a silver lining.

Inflation dynamics are anticipated to improve across the majority of Asian economies, with pressures expected to diminish further in 2024. That said, regions currently experiencing lower inflation levels might see a moderate rise.

Fibre2Fashion News Desk (DP)

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