East Asia and Pacific to see moderate growth

MANILA, Philippines — The East Asia and the Pacific region is expected to have moderate growth this year amid headwinds from tight financial conditions and geopolitical rifts, according to a new report from the World Economic Forum (WEF).

The January 2024 report released by the WEF yesterday showed 56 percent of chief economists expect moderate economic growth in East Asia and the Pacific this year.

It also showed 30 percent expect East Asia and the Pacific to post strong growth this year, while 15 percent are forecasting weak growth for the region.

WEF’s report is based on a survey of leading chief economists from the public and private sectors conducted in November to December of last year.

“The outlook for South Asia and East Asia and Pacific remains positive and broadly unchanged compared to the last survey,” the WEF said.

It said China is an exception as weak consumption, lower industrial production and distress in property markets could weigh on growth this year.

In terms of the global outlook, the WEF said 56 percent of chief economists expect growth to weaken this year.

Meanwhile, 43 percent foresee unchanged or stronger conditions for the global economy this year.

“Global economic activity is stalling with signs of slowdown in both the manufacturing and services sectors,” the WEF said.

In addition, tight financial conditions weigh on consumer and business sentiments.

The WEF also said geopolitical rifts are compounding uncertainty.

It said a majority or 87 percent of economists expect recent geopolitical developments to stoke global economic volatility.

Eight out of 10 economists also expect geopolitical developments to heighten volatility in stock markets.

WEF managing director Saadia Zahidi said the resilience of the global economy would continue to be tested.

“Though global inflation is easing, growth is stalling, financial conditions remain tight, global tensions are deepening, and inequalities are rising – highlighting the urgent need for global cooperation to build momentum for sustainable, inclusive economic growth,” she said.