HCMC – The Mastercard Economics Institute (MEI) has expected modest growth across Asia Pacific in 2024, although regional economies may stabilize and key drivers like exports and tourism approach pre-pandemic levels.
The region’s outlook, detailed in the report “Economic Outlook: Balancing Prices & Priorities”, forecast upward trends in economic performance in Singapore, Malaysia, the Philippines and Vietnam.
Still, China, Japan, Australia, and New Zealand may face slowdowns.
Consumer spending patterns are set to shift, with Asia Pacific households allocating more to discretionary items like travel and entertainment. This follows years of high inflation, where essentials dominated budgets, according to experts.
“2024 is set to be a year of recalibration as consumers rebalance their wallets. And what the data shows is that people remain eager to travel and dine out, although levels vary from market to market,” said David Mann, Asia Pacific chief economist at Mastercard.
Another trend predicted is a rebound in consumer goods spending, exceeding 2023 levels and reversing the post-pandemic prioritization of services. Vietnam’s real consumer spending in 2024 may expand by 6.5% year-on-year.
The tendency is expected to benefit the region’s manufacturing sector, leading to a convergence in performance between manufacturing and services.
China’s outbound travel recovery will be in the spotlight next year. Expanded group travel options and eased visa restrictions will encourage Chinese to travel abroad, especially destinations in Southeast Asia, Northeast Asia, North America and Europe.
