Developing East Asia and Pacific is growing slower post-pandemic but expected to sustain growth at 4.5% in 2024. Priority should be given to boosting productivity through competition, infrastructure, and education reforms.
Regional Economic Outlook
The World Bank reported that the Developing East Asia and Pacific region is experiencing faster growth compared to the global average, but at a slower pace than pre-pandemic levels. While improving global trade and financial conditions are set to bolster economies in the region, rising protectionism and policy uncertainty may hinder growth.
Key Takeaways
- The region is expected to maintain a growth rate of 4.5% in 2024 despite challenges.
- Focusing on enhancing productivity among leading firms in digital-intensive sectors is vital for sustained economic growth.
- To boost productivity and ensure long-term growth, the region should prioritize private sector investment, address financial sector issues, and invest in human capital and infrastructure.
Challenges and Forecasts
According to the World Bank’s April 2024 Economic Update for East Asia and Pacific, regional growth is projected to ease to 4.5% in 2024, with China’s growth moderating due to various economic challenges. The Pacific Island countries are also expected to see a slowdown in growth as the initial post-pandemic recovery fades. World Bank officials emphasize the need for countries in the region to enhance private sector investment, address financial sector obstacles, and improve productivity to sustain growth momentum amidst global uncertainties.
Source : East Asia and the Pacific Region to Maintain Growth Despite Global Challenges
