
The World Bank reports that developing economies in East Asia and the Pacific are facing slower growth due to sustained high-interest rates and increasing geopolitical tensions, with GDP growth expected to dip from 5% in 2023 to 4.5% in 2024 and 4.3% in 2025. This slowdown is partly attributed to China, where efforts to balance growth and stimulate consumption through non-traditional fiscal measures are challenging. Despite these hurdles, the Philippines, Vietnam, and Cambodia are projected to achieve growth rates above 5% in the coming years. Risks to the region include persistent core inflation in the US and EU, political unrest, trade protectionism, and a significant rise in debt: particularly corporate debt in China and Vietnam, and household debt in China, Malaysia, and Thailand, potentially constraining consumption and investment.