APEC’s growth expected to slow in 2024

The growth of APEC economies is expected to decline next year. (Photo: VNA)

Washington D.C. (VNA) – The growth of APEC economies is expected to decline next year and remain below the global average as higher interest rates slow US growth and China continues to struggle with its recovery.

The APEC Secretariat's Policy Support Unit issued new forecasts on the eve of the 2023 APEC Economic Leaders’ Week in San Francisco, showing that the GDP growth of the economies would dip to 2.8% in 2024 from 3.3% in 2023.

The GDP growth rate will average 2.9% in 2025 and 2026, below the global average of 3.2%.

Among the key downside risks are persistent inflation associated with export restrictions, weather conditions that have raised the price of rice and other agricultural products, and disruptions in the fertiliser supply chain. Taming inflation could require more monetary policy tightening, slowing growth further.

Trade volume growth for goods is set to rebound next year among the APEC economies after a largely flat 2023, rising to 4.3% for goods exports and 3.5% for goods imports. But growth of both exports and imports are forecast to peak at 4.4% in 2025, declining slightly in 2026 due to geo-political fragmentation that is disrupting longstanding supply relationships./.

VNA