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The Asian Development Bank (ADB) has increased its economic growth forecast for developing economies in the Asia Pacific region to 5.0% in 2024, up from its previous projection of 4.9%. This upward revision underscores the region’s resilience and capacity for recovery amidst global economic uncertainties. The ADB’s revised forecast reflects stronger-than-expected performances in key sectors such as services, exports, and industrial activity, pivotal in driving economic growth.
China, the region’s largest economy, plays a significant role in this positive outlook. While the ADB maintained China’s growth projections at 4.8% for 2024 and 4.5% for 2025, the country’s recent economic performance has been commendable. In the first quarter of 2024, China exceeded expectations with a year-on-year growth rate of 5.3%. This robust growth is largely attributed to increased service consumption, export surge, and vigorous industrial activity.
The service sector in China has shown remarkable resilience and expansion, contributing significantly to the overall economic growth. Consumer confidence has been bolstered by the gradual easing of pandemic-related restrictions and the implementation of supportive government policies. As a result, domestic consumption, particularly in services such as tourism, hospitality, and retail, has seen substantial growth.
Exports have also been a major driver of China’s economic performance. The country has managed to maintain strong export levels despite global supply chain disruptions and geopolitical tensions. This resilience in exports is partly due to the diversification of trade partners and the increased demand for Chinese goods in various international markets.
Industrial activity in China has similarly shown strong performance, with manufacturing output remaining robust. Investments in technology and infrastructure have further enhanced industrial productivity and efficiency. The government’s focus on innovation and digital transformation has played a crucial role in sustaining industrial growth.