The Asia-Pacific region faces a complex economic landscape characterized by growth potential tempered by significant risks. Forecasts project a GDP growth rate of 3.4% in 2024, with inflation expected to moderate to around 2.3%, but challenges such as geopolitical tensions, climate change, global supply chain vulnerabilities, and ageing populations present substantial risks. These risks are exacerbated by factors such as protectionism, trade conflicts, and the increased frequency of natural disasters affecting economic stability and productivity.
Survey insights reveal a region optimistic about growth but concerned about key obstacles. Among the top five risks identified are geopolitical tensions and associated sanctions, climate change impacts, and supply chain disruptions. Trade and investment liberalization remain central to APEC’s goals, yet achieving these goals is increasingly challenging under the current trade-restrictive environment and fragmented global economy.