Boao Report Predicts 4.5% Growth for Asian Economy in 2024
The Asian economy is forecasted to expand by approximately 4.5% in 2024, exceeding the growth rate of 2023, and continuing to be the largest contributor to global economic growth, according to a report released on Tuesday by the Boao Forum for Asia (BFA). The announcement was made during the BFA’s 2024 conference held in Boao, a resort town in southern China’s Hainan Province.
The Asian Economic Outlook and Integration Progress Annual Report 2024 highlights that despite facing various external economic challenges, Asia will maintain a relatively high growth rate. This resilience is attributed to robust consumption levels and proactive fiscal policies across the region.
The report underscores China’s pivotal role in the global economy, noting that China will continue to be a major contributor to global economic growth. The immense size of China’s market is expected to bring substantial benefits to the world economy.
In trade and investment, Asia is poised to reverse the downward trends experienced in 2023. The report explains that factors such as the accelerated development of digital trade, the revival of tourism, ongoing advancements in economic and trade agreements like the Regional Comprehensive Economic Partnership, and the restructuring of Asian value chains are expected to invigorate regional economic integration and inject new momentum into Asian trade and investment.
Regarding employment, the report offers a cautious outlook. It suggests that due to the ongoing global economic downturn, employment growth in 2024 may be relatively sluggish, particularly in the populous regions of East and South Asia, potentially dampening Asia’s overall employment prospects. However, it notes that the overall unemployment rate in Asia is expected to remain below the global average.
The report also addresses income growth, stating that it “remains under considerable pressure.” Despite an increase in total weekly working hours in full-time jobs across most Asian regions, significant disparities in sectoral incomes may exacerbate domestic income inequality within Asian economies.
On the inflation front, the report forecasts that inflation pressure in most Asian economies is expected to ease further in 2024. Nevertheless, economies currently experiencing lower inflation may see a slight uptick.
Li Baodong, secretary-general of the Boao Forum for Asia, delivered a speech at the conference, emphasizing the importance of cooperation and innovation in sustaining Asia’s economic growth amidst global uncertainties.
Reference(s):
cgtn.com
