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Asean
This Week in AsiaEconomics

How China’s reopening is helping resilient Asia avert a full-blown recession

  • China’s surprise reopening and its spillover effects – mostly in the form of tourism – are seen as buttressing the region’s economies
  • But weak demand in US and EU, which could both slide into recession this year, will be problematic for exporters in China and Asean

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A cargo ship docks at China’s busiest port, the Port of Ningbo Zhoushan in Zhejiang province, earlier this month. Photo: Xinhua
Su-Lin Tanin Singapore
Fears of a full-blown recession in Asia this year remain tempered as economic growth for the region is expected to stay resilient amid China’s reopening, the recovery of tourism and slowing interest-rate increases globally, economists say.
After the International Monetary Fund last week lifted its growth forecast for China, as well as emerging and developing Asia, some economists have modified their outlook for the region.
Broadly, they now see Asia outperforming developed economies such as the United States and European Union, which could both enter recession this year and where the IMF forecasts GDP growth of 1.4 per cent and 0.7 per cent, respectively.

Emerging and developing Asia, meanwhile, is predicted to see GDP growth of 5.3 per cent, the IMF says, nudged higher by expected growth of 5.2 per cent in China.

Tourists from China and elsewhere tour a temple in Thailand’s Chiang Mai province last month. Economists say the return of Chinese tourists is likely to buttress Asian economies. Photo: AP
Tourists from China and elsewhere tour a temple in Thailand’s Chiang Mai province last month. Economists say the return of Chinese tourists is likely to buttress Asian economies. Photo: AP
China’s surprise reopening at the turn of the year and its spillover effects into the rest of Asia – mostly in the form of tourism – are likely to buttress the region’s economies even as global headwinds mount, economists say.
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