World Bank cuts growth estimates for East Asia to 5% in 2023; slashes China’s 2024 GDP growth amid property crisis
Also Read: Asian markets mixed as China’s factory activity expands, US govt shutdown averts; dollar gains China’s GDP growth estimates for next year have been cut to 4.4% from the 4.8% previously projected. “In 2024, improving external conditions will help growth in the rest of the region but persistent domestic difficulties in China – the fading of the bounce back from the re-opening of the economy, elevated debt, and weakness in the property sector, structural factors such as aging – will weigh on growth in China, slowing it to 4.4% in 2024," World Bank said.
Growth in the rest of the region is expected to edge up to 4.7% in 2024, as recovery in global growth and easing of financial conditions offsets the impact of slowing growth in China and trade policy measures in other countries, it added. (Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) “What happens in China matters for the whole region," the report read.
“A 1% reduction in its growth is associated with a reduction in regional growth by 0.3 percentage points." Excluding China, East Asia and the Pacific should see slightly faster growth in 2024 as the global economy improves and revives foreign demand for the region’s manufactured goods and commodities, the World Bank said. “The East Asia and Pacific region remains one of the fastest growing and most dynamic regions in the world, even if growth is moderating," said World Bank East Asia and Pacific Vice-President Manuela V.
Ferro. “Over the medium term, sustaining high growth will require reforms to maintain industrial competitiveness, diversify trading partners, and unleash the productivity-enhancing and
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