The World Bank has projected a slowdown in the economic growth of developing economies in East Asia and the Pacific for 2023 and 2024. According to the forecast, the Gross Domestic Product (GDP) growth rate is expected to be 5% for 2023 and will further decrease to 4.5% for 2024. This marks a downward revision from previous predictions, largely attributed to tightened financial conditions and a globally weak environment.
China, which holds the position of the world’s second-largest economy, is expected to grow by only 4.4% next year. This relatively slow growth is due to ongoing property issues, rising debt, and a diminishing boost from post-COVID reopening. However, China’s economy is predicted to rebound to a growth rate of 5.1% in 2023.
As a significant player in the region, China’s economic performance greatly influences regional growth. Despite this, the World Bank report suggests that excluding China, the region could experience slightly faster growth. This optimism hinges on improvements in the global economy and a revival of foreign demand for products from this region.
The report also identifies geopolitical tensions and potential natural disasters as risks that could impact these forecasts. The economic outlook for East Asia and the Pacific is thus fraught with uncertainties, as these economies navigate both internal and external challenges in the coming years.
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