Asia-Pacific GDP forecast to grow 3.1% in 2023

The Asia-Pacific region’s economy is projected to expand 3.1% this year before dropping to 2.9% growth in 2024 as downside risks continue to pressure recovery, according to an analysis from an Asia-Pacific Economic Cooperation (Apec) research unit.

A new report by the Apec Policy Support Unit (PSU) indicated the region’s GDP growth will pick up shortly from 2.6% last year, as estimated by the IMF’s World Economic Outlook.

This year, the regional economy will be bolstered by upside opportunities such as the reopening of borders and businesses, as well as an increase in private consumption.

Downside risks such as inflation, higher interest rates and geopolitical issues will have moderate effects on the economy, said the report.

In 2022, inflation in the Asia-Pacific region was 5.8%, the highest since the 2008 financial crisis when it peaked at 6.6%.

PSU estimates…