Asian economy forecast to grow by 4.5% in 2024: Boao report

The Asian economy is expected to grow by around 4.5 percent in 2024, surpassing that of 2023, and continue to be the largest contributor to global economic growth, according to a report released Tuesday by the Boao Forum for Asia (BFA) which convenes its 2024 conference in Boao, a resort town in southern China's Hainan Province.

According to the forum's Asian Economic Outlook and Integration Progress Annual Report 2024, despite facing various external economic challenges, the Asian economy will still maintain a relatively high growth rate, supported by relatively strong consumption and proactive fiscal policies.

The report also points out that China will continue to be a major contributor to global economic growth, and its large market size will bring huge dividends to the world.

In terms of trade and investment, Asia is expected to reverse the downward trend in 2023, the report said, explaining that the accelerated development of digital trade, the recovery of tourism in Asia, the continuous advancements of economic and trade arrangements such as the Regional Comprehensive Economic Partnership, and the positive effects of the restructuring of Asian value chains and industrial chains on regional economic integration, are expected to gradually emerge and add new impetus to Asian trade and investment. 

In terms of employment, the report said that due to the ongoing economic downturn, the global employment outlook for 2024 is not particularly optimistic, projecting relatively sluggish employment growth in 2024 in the populous regions of East and South Asia that may dampen Asia's overall employment growth."But the overall unemployment rate in Asia is expected to remain below the global level," the report said. 

In terms of income, the report said that income growth "remains under considerable pressure," despite an increase in total weekly working hours of full-time jobs in most Asian regions. Given the wide variance in sectoral incomes, domestic income inequality within Asian economies could further exacerbate, it warned. 

The report also forecast that overall, inflation pressure in most Asian economies is expected to ease further in 2024, noting that economies currently experiencing lower inflation are projected to witness an uptick. 

Li Baodong, secretary-general of the Boao Forum for Asia, delivered a speech at the conference.

According to Li, this year's annual meeting has set up "4+1" sections, namely "World Economy," "Science and Technology Innovation," "Social Development," "Meeting Challenges Together" and "International Cooperation." 

"We hope that through the discussion of the above sections, we can further enhance the consensus that the realization of sustainable development is the common interest of the world," Li said. "Solidarity and cooperation are the common responsibility of the international community."

Agenda for 2024 conference

According to this year's agenda, the 2024 annual conference is held from March 26 to 29 in the resort town of Boao. This year's conference includes a BFA Annual Conference 2024 press conference scheduled on March 26, a raft of panel discussions, and other invitation-only events such as roundtables and CEO dialogues. The opening plenary is scheduled for March 28, according to the agenda posted on the BFA's website.

The panel discussions, in particular, will cover a broad range of topics including those focusing on Asia, such as investing in Asia, deepening financial cooperation in Asia, and efforts to build Asia into a growth center.

The Asia-focused topics will deliberate on boosting investor confidence, improving the investment ecosystem and enhancing foreign investment attractiveness, advancing financial cooperation in Asia to boost the real economy, and strengthening industrial and supply chain cooperation among Asian nations.

The agenda also arranges discussions on topics such as AI, the future of new energy vehicles, and high-quality Belt and Road cooperation, with speakers expected to discuss when and where the breakthrough moment of technological revolution is, the changes brought by AIGC to the economy and lifestyle of humanity, the risks it brings, and global AI governance.

The panel discussions will also dwell upon other larger topics such as confronting fragmentation in global trade, the global geopolitical outlook, the global economic outlook, the Global Security Initiative in addressing security challenges and promoting world peace, and overcoming political hurdles to address the climate crisis and accelerating global climate action.

With a founding purpose to promote economic integration in Asia, the mission of the BFA, is to pool positive energy for the development of Asia and the world.

The BFA announced earlier the theme of this year's conference is "Asia and the World: Common Challenges, Shared Responsibilities." 

(With input from Xinhua)