East Asia and Pacific growth to outpace world but slows post-pandemic, says

The East Asia and Pacific (EAP) region is projected to continue growing faster than the rest of the world in 2024, but its pace has slowed compared to pre-pandemic levels, according to the World Bank’s latest East Asia and Pacific Economic Update. The region is forecast to grow at 4.8% in 2024, declining to 4.4% in 2025.

China, EAP’s largest economy, is expected to see growth drop from 4.8% in 2024 to 4.3% in 2025 due to ongoing property market challenges, weakening consumer and investor confidence, and structural issues like an aging population and global tensions. Growth in the rest of the region is projected to rise to 4.9% in 2025, driven by domestic consumption and recovering exports.

“Countries in the East Asia and the Pacific Region continue to be an engine of growth for the world economy,” said Manuela V. Ferro, Vice-President of the World Bank for East Asia and the Pacific. “However, growth is slowing.”

The World Bank identifies shifting trade patterns, China’s slowing demand, and global uncertainty as key challenges to regional growth. The report also highlights the rise of new technologies like AI and robotics, which are reshaping labor markets and could create both opportunities and risks for the region.

The Pacific Islands, benefiting from tourism recovery, are expected to grow by 3.5% in 2024 and 3.4% in 2025. However, overall investment growth remains weak across much of the region.

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