Asia is expected to remain the largest contributor to global economic growth (Getty Images)

A report - today, Tuesday - expected that Asia's economy will grow by about 4.5% in 2024, exceeding the growth recorded last year, and that Asia will remain the largest contributor to global economic growth. In terms of purchasing power parity, the total Asian economy is expected to represent 49% of global GDP this year, an increase of 0.5 percentage points from 2023.

High rate

According to the annual report issued today by the 2024 Annual Conference of the Asian Forum, held in Boao, a tourist resort in Hainan Province, southern China, despite facing multiple external economic challenges, the Asian economy will maintain a relatively high growth rate, supported by relatively strong consumption and proactive financial policies.

The report - issued under the title "Prospects and Progress in the Integration of the Asian Economy" and reported by Xinhua News Agency in part - expected that the economic growth rate of the eastern continent would remain at the same level recorded in 2023, amounting to 4.3%, while the economic growth rate of the south would rise from 5.4% in 2023 to 5.8%, to maintain its position as the fastest growing region on this continent.

At the same time, the economic growth rate of Central Asia is likely to decline from 4.5% in 2023 to 4.3%, while the report expects the economic growth rate of West Asia to rise from 2.5% in 2023 to 3.5% this year.

In terms of purchasing power parity, the total Asian economy is expected to account for 49% of global GDP this year, an increase of 0.5 percentage points from 2023, the report said.

The economies of Asia, especially China, are among the determinants of global economic growth (Shutterstock)

Trade and investment

As the report indicated, in terms of trade and investment, Asia is expected to buck the downward trend in 2023, noting that the accelerated development of digital trade, the recovery of Asian tourism, the continued progress of economic and trade agreements such as the Regional Comprehensive Economic Partnership Agreement, and the positive effects of reshaping value chains and... Asian industries on the basis of regional economic integration, the effects of which will all be gradually manifested, as expected, and will inject new impetus into trade and investment in Asia.

Regarding employment, the report pointed out that global employment prospects for 2024 are not particularly optimistic due to the ongoing economic decline, and employment growth is expected to be relatively slow in densely populated areas in East and South Asia in 2024, which may limit the overall employment rate. On the continent, noting that “the overall unemployment rate in Asia is expected to remain below global levels,” according to the report.

Regarding income, the report said that despite the increase in total weekly hours worked for full-time work in most parts of Asia, income growth “remains under significant pressure”. He warned of the worsening inequality in household income in Asian economies due to the wide disparity in sector incomes.

The report also expected - in general - that inflationary pressures in most Asian economies would ease further in 2024, indicating that it is expected that the economies - which are currently witnessing low inflation - will achieve an increase in the level of inflation.

The Boao Forum was established for the purpose of promoting economic integration in Asia, but its mission is to mobilize positive energies for development on this continent and the world.

This annual conference will be held between 26 and 29 March.

Source: Agencies