East Asia & Pacific region's growth forecast at 5% in 2023

Specifically, growth in China for 2023 is projected at 5.1 per cent, while the region excluding China is expected to see a 4.6 per cent growth rate. Pacific Island Countries are set to experience a 5.2 per cent growth rate, as per World Bank’s East Asia and Pacific October 2023 Economic Update.

However, the report highlights concerns for 2024. Improving external conditions will boost growth in the broader region, but domestic challenges in China, including the after-effects of economic reopening, soaring debt, and a weak property sector, will slow its growth to 4.4 per cent. In contrast, the rest of the region is projected to slightly improve, with a growth rate edging up to 4.7 per cent in 2024. This uptick is expected to counterbalance the slowing growth in China and trade policy measures in other countries.

The report also draws attention to additional risks that could threaten the region's economic outlook. These include rising geopolitical tensions and the potential for natural disasters, such as extreme weather events.

“The East Asia and Pacific region remains one of the fastest growing and most dynamic regions in the world, even if growth is moderating,” said World Bank East Asia and Pacific vice-president Manuela V. Ferro. “Over the medium term, sustaining high growth will require reforms to maintain industrial competitiveness and diversify trading partners.”

Fibre2Fashion News Desk (DP)