The Asian economy is poised for a robust growth of around 4.5 percent in 2024, surpassing the growth rate of 2023 and continuing to be the largest contributor to global economic expansion. This optimistic forecast comes from the Boao Forum for Asia (BFA) during its 2024 conference held in Boao, a picturesque resort town in southern China's Hainan Province.
According to the forum's Asian Economic Outlook and Integration Progress Annual Report 2024, the region is expected to maintain a relatively high growth rate despite facing various external economic challenges. This resilience is attributed to strong consumer spending and proactive fiscal policies across Asian nations.
The report highlights that China will remain a major driver of global economic growth. With its vast market size, China is set to deliver substantial dividends to the world economy, reinforcing Asia's pivotal role in global markets.
In the realm of trade and investment, Asia is anticipated to reverse the downward trend observed in 2023. The Boao report credits this turnaround to the accelerated development of digital trade, the resurgence of tourism across the continent, and the continuous advancements in economic and trade arrangements like the Regional Comprehensive Economic Partnership (RCEP). Furthermore, the restructuring of Asian value and industrial chains is fostering deeper regional economic integration, adding new momentum to trade and investment activities.
However, the employment outlook presents a mixed picture. The global employment scenario for 2024 remains cautious, with relatively sluggish job growth projected for populous regions in East and South Asia. Despite this, the report notes that the overall unemployment rate in Asia is expected to stay below the global average.
Income growth in the region remains under pressure. Despite an increase in total weekly working hours for full-time jobs across most Asian regions, the report warns of widening income inequality within Asian economies due to significant variances in sectoral incomes.
On the inflation front, the Boao Forum forecasts that inflation pressures in most Asian economies are likely to ease further in 2024. Nevertheless, economies currently experiencing lower inflation may see a slight uptick as pressures normalize.
Li Baodong, secretary-general of the Boao Forum for Asia, delivered a speech at the conference, underscoring the region's economic resilience and the strategic initiatives driving growth.
Reference(s):
cgtn.com
