Asia Pacific's (APAC) economic growth in 2024 will be shaped by export recovery and the impact of elevated interest rates and inflation, according to S&P Global Ratings. The export recovery, initially seen in northeast Asian semiconductor shipments, has now expanded to other sectors and economies in the region. China and several Southeast Asian countries are experiencing rising export volumes. S&P Global expects higher GDP growth in Malaysia, the Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam. However, it projects that Japan's GDP growth will slow down due to elevated inflation, while Australia's GDP growth will be dampened by restrictive interest rates. The domestic demand in APAC will also be influenced by US policy rates. Overall, S&P Global Ratings forecasts a 5.1% growth in the APAC region (excluding China and Japan) in 2024 [bdbf28c2][7d8aadea].
The World Bank report and the Global Economic Prospects report have highlighted the challenges faced by Asian economies in 2024. Debt, trade barriers, policy uncertainties, and the policies of powerful nations have contributed to the economic slowdown in the region. Myanmar's economic crisis, characterized by conflict, inflation, and economic stagnation, further adds to the challenges faced by the region. Moody's Analytics' assessment of the Philippines as a growth underachiever in ASEAN highlights the struggles faced by the country in achieving pre-pandemic levels of economic growth. It is crucial for governments to address long-term issues, implement efficient policies, strengthen social welfare, and invest in education and productivity improvements to ensure sustainable growth in the region [bf8aa04c][19e79eb1][fa6790ca][7d8aadea].