As inflation continues to impact global economies, Asia-Pacific is the only region that will see real salary growth in 2023, according to ECA International.
Published April 1, 2024
- Despite remaining the fastest growing region, the World Bank’s latest report says East Asia and Pacific’s growth is projected to ease to 4.5% in 2024 from 5.1% last year amid headwinds in China and policy uncertainty.
- However, excluding China, growth in the EAP region is predicted to reach 4.6% this year — higher than 4.4% in 2023.
- “China has become profoundly important for the region, as a source of inputs, as a destination where value added produce in the region is ultimately consumed, and as well as a source of investment,” Aaditya Mattoo, East Asia and Pacific chief economist at the World Bank says.
Growth in developing East Asia and Pacific is outpacing the rest of the world, but the region will likely see slower growth in 2024 amid headwinds in China and broader policy uncertainty, according to the World Bank.
“It is a region that is still outperforming the rest of the world, but it is underachieving relative to its own potential,” Aaditya Mattoo, East Asia and Pacific chief economist at the World Bank, told CNBC’s “Street Signs Asia” on Monday.
Growth in the region is expected to ease to 4.5% this year, slowing from last year’s 5.1% expansion, according to the bank’s East Asia and Pacific (EAP) update for 2024, which was released Monday. The region has a population of over 2.1 billion people.
However, excluding China, growth in the region is predicted to reach 4.6% this year — higher than 4.4% in 2023.
“The outlook is subject to downside risks, which include a greater than expected slowdown in the global economy, higher for longer interest rates in major economies, increased uncertainty around the world about economic policies, and an intensification of geopolitical tensions,” the report said.
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SOURCE: www.cnbc.com
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