The Mastercard Economics Institute has released its annual economic outlook for the Asia Pacific region. It predicts modest growth in 2024 as economies stabilize and key drivers of growth, like exports and tourism, recover.
- The economic outlook for the Asia Pacific region in 2024 is one of modest growth, with a shift in consumer spending towards discretionary items like travel and entertainment.
- The demand for goods in Asia Pacific is expected to rebound in 2024, driving a convergence in performance between the manufacturing and services sectors in the region.
- Chinese outbound travel is set to recover further in 2024, with destinations in Northeast Asia, North America, and Europe expected to catch up, signaling the need for tourism authorities and retailers to adapt their strategies for Chinese visitors.
Singapore, Malaysia, the Philippines, Thailand, Taiwan, and South Korea are expected to see growth, while Australia, China, Japan, and New Zealand may experience slowdowns.
As the impact of the pandemic gradually diminishes, consumers in the region are expected to experience an increase in their disposable income. This could potentially lead to a shift in their spending behavior, with a greater emphasis on discretionary expenses like travel and entertainment.
The demand for goods is also expected to increase, leading to a rebound in the manufacturing sector. Additionally, Chinese outbound travel is predicted to recover, with destinations in Northeast Asia, North America, and Europe catching up. Retailers and tourism authorities will need to adapt their strategies to maintain appeal to Chinese visitors.