For other countries in the region, domestic stability has led to slightly increased growth forecasts, standing at 3.9 per cent for 2023 and remaining at 4.4 per cent for 2024. India’s gross domestic product (GDP) notably grew 4.2 per cent quarter on quarter, marking a 7.8 per cent rise year-on-year, according to an S&P Global article titled ‘Economic Outlook Asia-Pacific Q4 2023: Resilient Growth Amid China Slowdown’ by Louis Kuijs and Vishrut Rana.
China’s growth rate is projected to dip to 4.8 per cent in 2023 and further to 4.4 per cent in 2024 due to declining consumer confidence, as per S&P Global.
Other countries displayed domestic resilience, with growth estimates improved to 3.9 per cent for 2023 and steady at 4.4 per cent for 2024.
India’s GDP registered a 7.8 per cent YoY increase.
In a global context, both the US and Europe are likely to achieve soft economic landings. While the US and the eurozone are expected to grow modestly, risks are still present, especially in terms of inflation. Elevated US interest rates could put strain on Asia-Pacific markets and currencies through early 2024.
Despite fiscal contractions in China and slowed global demand affecting Asia-Pacific exports, domestic economies have shown resilience. For instance, investment and capital expenditure growth have remained strong in countries like Australia, India, Malaysia, and New Zealand.
Overall, the Asia-Pacific economies are expected to remain largely resilient despite China’s slowdown, underpinned by robust domestic demand and stable labour markets.
Fibre2Fashion News Desk (NB)