China's ongoing struggles continue to impact its economic performance. The forecast suggests a GDP growth of 5.4 per cent in 2023, which is expected to decelerate to 4.6 per cent in 2024. This projected slowdown is in line with the estimated potential growth, indicating that the economy may experience continued slack into the next year.
In contrast, economies outside of China within the Asia-Pacific region are showing resilience. The growth in 2023 and 2024 is anticipated to be particularly strong in emerging market economies such as India, Indonesia, Malaysia, and the Philippines. These nations are benefiting from robust domestic demand, setting them apart from the broader regional trend, as per the report.
Regarding monetary policy, the Asia-Pacific region is witnessing a gradual easing of core inflation. Consequently, central banks across the Asia-Pacific are unlikely to implement further tightening of monetary policies. However, due to sustained higher interest rates in the US, significant reductions in policy rates in the Asia-Pacific region are not expected in the upcoming six months.
ALCHEMPro News Desk (DP)
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