As investors start to look towards 2024, we thought it might be interesting to look at the IMF economic forecasts for 2024 for the top 10 APAC economies. We have also added the forecast for 2023 to put the 2024 forecasts in context.
China
While some forecasts suggest the Chinese economy will grow by around 5.2% in 2023, the IMF believes the figure will be 5%, falling to 4.2% in 2024. The Chinese economy is critical to the performance of the wider APAC region.
Japan
Amid hopes that the Japanese economy may finally be turning a corner, current forecasts from the IMF don't suggest this is imminent. The forecast for 2023 is a 2% increase in GDP, but this is expected to fall to just 1% in 2024.
India
The Indian economy is likely to remain relatively level, with the IMF expecting 6.3% growth in 2023 and the same again in 2024. After several fiscal challenges, the economy appears to be back on track.
Australia
Even though the Australian economy managed to avoid a recession during the 2007/8 global financial crisis, it is currently under pressure. Economic growth is expected to fall to 1.8% in 2023 and just 1.2% in 2024, compared to 3.7% in 2022.
South Korea
According to the IMF, GDP growth in Korea is expected to come in at 1.4% in 2023, rising to 2.2% in 2024, after hitting 2.6% in 2022.
Indonesia
After a period of strong growth, it is no surprise that the forecast GDP growth for Indonesia is expected to fall slightly to 5% in 2023 and 2024. This is still very respectable for a country expected to be one of the leaders in the APAC region in the future.
Thailand
According to IMF forecasts, the Thailand economy is set to remain relatively stable. After registering GDP growth of 2.6% in 2022, the IMF is predicting growth of 2.7% in 2023 and 3.2% in 2024. There are been some positive developments in Thailand's economy in recent years, and many international investors are taking note.
Singapore
Singapore has one of the most developed economies in the APAC region, but economic growth is expected to fall in 2023, registering just 1% growth in GDP. The forecast for 2024 is more encouraging at 2.1% in challenging times across the Far East and globally.
Bangladesh
Perhaps one of the unsung heroes of the APAC region, the Bangladesh economy grew by 7.1% in 2022, and while GDP is expected to fall in 2023, at a more than respectable 6% this is encouraging. Growth in 2024 is also likely to come in at 6%, which compares favourably to others in the APAC region and globally, with the likes of the UK set to register minimal growth in the short term.
Vietnam
Vietnam's GDP grew by 8% in 2022, although this is expected to fall to 4.7% in 2023 before increasing to 5.8% in 2024. Identified by many as a country with impressive prospects for the future, this rate of GDP growth compares favourably to others in the region.
Summary
Many of these APAC figures are impressive against average advanced economy GDP growth forecasts of just 1.5% in 2023 and 1.4% in 2024. Even though the Chinese economy still dominates the region, there are several potential hidden gems just off the radar.