East Asia Economy 2024

Hong Kong China

Private consumption investment and tourism is growing in average. Its growth is medium
accordingly from the post-pandemic. The activity in the People’s Republic of China (PRC) has weaken
that lead to inflation is likely over the expected line.

In the medium term, diversification inside and outside of the financial sector is critical to sustain.

In economy, GDP growth is increasing.

Growth resumed in 2023 with GDP 3.2% rising by 3.2% following a contraction 3.7% in 2022.

With the financial sector, facing external diversification should be prioritized.

Strategic reassessment is required for the economy’s reliance on the finance sector so as to protect
the long-term prospects of an economic slowdown in the PRC growing financial markets and
geopolitical tensions with the US.

Preserving the city’s competitive edge in finance must be balanced with fostering diversification into
value-added activities in order to ensure sustained prosperity.

Mongolia

The economy has grown in mineral output and exports increasing till current account, fiscal
surpluses, and larger international reserves. Inflation remained elevated.

Before Inflation should continue to ease and the current account will return to deficit, Mining should
be continued for growth while agriculture confronting unusual harsh weather will likely contract in
recovering modestly.

Mongolia needs to accelerate investment in climate change mitigation and adaptation, in order to
meet the targets and build economic resilience for which improved institutional capacity and
investment climate are required.

The economy grew 7% by in 2023 supported by mining and the full border reopening with the
People’s Republic of China (PRC).

People’s Republic of China (PRC)

It is a continuing concern that economic growth is over and deflationary is remain unchanged until
there is a increasing in domestic and global demand. Growth this year and coming year will be
supported by fiscal assistance. However, it may improve if the property sector correct.

There is a pressing that will address the property sector and local government finance issues.

In Economy, Economic growth decrease to 5.2% in 2023, 3% in 2022.

REPUBLIC OF KOREA

Economic growth accelerate from 1.4% in 2023 to 2.2% in 2024 due to higher exports but it will
reduce to 2.4% in 2025 with global recovery.

Rigid monetary and fiscal policies make domestic demand into remain half . It improves in 2024 as
inflation is over and global oil prices stabilize.
The increased level of household debt and debt service costs is a policy challenge especially in a high
interest rate environment.

In Economy, GDP growth decreased to 1.4% in 2023 from 2.6% in 2022.

Taipei, China

Although export is demanded, growth is slow in 2023. In 2024, growth may be expected as
increasing and inflation fall down with export and investment rise and then would decrease slightly
in 2025 as consumption is over. Inflation is over as supply shocks as the typhoon and commodity
price. Policies are crucial that pricing of housing are affordable for residential.

In Economy, after contracting in the first half of the economy, consumer spending is upgrade.

Policies comments

In People’s Republic of China, Over inflation is problem with the less activities and then private
consumption investment and tourism sector should be made effort over average.

In financial sector, different nature needs care to be growth.

To prevent economic slowdown, strategic reassessment is necessary in order to grow in the financial
market and geopolitical affair with the US.

Competitive strategy are balanced, value added activities are encouraged, and sustainability is
ensured.

In Mongolia, in order to improve investment, institutional capacity and investment climate is

important for targets and economic resilience.

In Republic of Korea, policy challenge is a household debt as a highly concern.

In Taipei, inflation is over that lead to price level would rise. In this situation, policy care is taken for
residential to be affordable price.

In East Asia, over inflation is needed to be prioritized, investment sector should be emphasized, and
institutional capacity would have been upgraded for highly efficient operations.

Reference:
https://www.adb.org/publications/asian-development-outlook-april-2024

Prepared by:
Sunny Suwanmethanont
Moe Chit Khaing