Boao Forum’s Annual Economic Outlook Report Highlights Asia’s Certainty Amid Global Uncertainty
According to the annual economic outlook report released at the Boao Forum on Tuesday, Asia, especially China, is a region of certainty during a time of global uncertainty. The report attributes this certainty to the deepened financial integration in Asia, which has made regional economies more resilient against negative impacts from international capital flows.
The report does not go into detail about recent banking turmoil in the U.S. and Switzerland but expects the banking sector to remain stable. It is unclear whether this refers to the global financial sector or the banking sector in Asia or China.
The report highlights the negative impact of aggressive U.S. Federal Reserve interest rate hikes on Asian economies. The report expects weighted real GDP in Asia to grow 4.5% this year, up from 4.2% in 2022. Most Asian economies are expected to maintain tight monetary policy this year.
Zhang Yuyan, a member of the faculty of the Chinese Academy of Social Sciences, pointed out that every country’s situation is different but highlighted China’s latest rate cut, which took effect on Monday. The report states that Asia held the G-20 summit last year and will hold another this year, entering into the “Asian moment” for global economic governance.
The Boao Forum for Asia, which has been held annually at the Chinese island province of Hainan since 2001, was cancelled in 2020 due to the Covid pandemic