The Asian Economy in 2024
The Asian economy in 2024 is projected to be a powerhouse of growth, contributing significantly to the global economy1. Despite regional geopolitical tensions and China’s slowing economy, Asia is set to experience strong growth2.
ASEAN Economic Outlook
The economic outlook for the ASEAN region in 2024 remains positive, supported by the continued expansion of domestic demand in a number of large Southeast Asian economies3. The total nominal GDP of the ten ASEAN nations measured in US dollar terms amounted to USD 3.6 trillion in 2022, more than doubling compared with total GDP of USD 1.6 trillion in 20093. The near-term outlook is for continued strong growth in the ASEAN region in 2024, helped by resilient domestic demand and some improvement in exports of goods and services3.
Indonesia
Indonesia’s GDP growth rate in 2023 is estimated at around 5%, with a similar pace of economic growth forecast for 20243. Private consumption is a key driver of economic growth, accounting for around 53% of total GDP and growing at a pace of 5.1% year over year (y/y) in the third quarter of 20233.
Vietnam
Vietnam’s GDP growth rate in 2023 was estimated at 5.1%, with economic growth momentum having been impacted by weak demand in key export markets, including the US, EU and mainland China3.
China’s Economic Outlook
Despite its slowing economy, China continues to play a significant role in the Asian economy. The Asian economy is expected to increase by 4.5 percent in 2024 amid a strong consumption and proactive fiscal policy, faster than 20234.
Conclusion
In conclusion, the Asian economy is expected to sustain a strong growth rate in 2024, accounting for 49 percent of the world’s GDP1. The region’s role in global EV manufacturing and the green energy industry will be a bright spot as markets seek regional alternatives to Chinese supply2. Despite differences and uncertainties, Asia continues to be the largest contributor to global economic growth1.
