Economic expansion: Barring the unforeseen, the Asia Pacific region is set for growth in the coming years
Despite the Asia Pacific macroeconomy experiencing a slow start to the year, the region’s growth momentum is rising, with signs of strength expected in major core economies. Without any shocks or unexpected shifts in the baseline, the regional economy is set for stable expansion over the coming years.
Soft domestic demand was experienced in the region’s large economies. China saw a slowdown in housing sales, while consumer spending dropped in Japan due to the consumption tax hike implemented in April 2014. The region’s growth momentum is rising, however, with signs of recovery on trade and production in China supported by the implementation of accommodative fiscal policy. Other mature economies such as Japan, Australia and South Korea are poised to see stronger growth in the second half of the year too.
Regional GDP growth in Asia Pacific is estimated to be 5.4 percent in 2014, an increase from 5.2 percent in 2013, and is forecast to grow at a faster pace of 5.5