Emerging Asia to spearhead global economic growth in 2023-24: Swiss Re

11 Jul '23

1 min read

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Insights

Emerging Asia, including China, India, Thailand, Indonesia, and Malaysia, is expected to drive global economic growth, with a 5.4 per cent increase projected for 2023-24, according to Swiss Re Institute's sigma report.
However, overall global growth estimates remain conservative, with growth predictions standing at 2.3 per cent for both this year and 2024.

Emerging Asia is poised to be the primary driver of global economic growth in the upcoming years, according to Swiss Re Institute's latest sigma report. The prediction comes as China's economy sees resurgence due to the easing of pandemic-related restrictions. Emerging Asia, which includes key players like India, Thailand, Indonesia, and Malaysia, is projected to grow by 5.4 per cent in 2023-24.

This surge is largely linked to the recovery in demand following the reopening of China's economy. Notably, China is forecast to be among the handful of nations to witness stronger growth this year than in 2022, as per the report.

However, Swiss Re maintains a conservative stance regarding overall global economic growth. The institute's forecasts are below consensus, with growth predictions standing at 2.3 per cent for both this year and 2024. The lingering effects of more than 18 months of climbing interest rates, worsening credit conditions, and continued reductions in central bank balance sheets are expected to curb growth prospects. Swiss Re highlights that risks to growth are still predominantly skewed to the downside.

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