KUALA LUMPUR, Feb 6 – Malaysia is among Asia-Pacific countries that may benefit from the competition over trade and technology between China and the United States (US) which continues to disrupt supply chains, according to Moody’s Investors Service.
Moody’s also forecast a structural shift in Asia-Pacific’s growth trajectory.
“We project the weighted average of real Gross Domestic Product growth for the 25 sovereigns in Asia-Pacific to decelerate to 3.6 per cent in 2024 from 4.4 per cent in 2023, reflecting the slowdown in China and broadly lacklustre global economic conditions, including the cyclical slowdown in the US,” it said.
The downshift in China’s growth trajectory, reflecting a continued emphasis on domestic rebalancing as well as the property sector slowdown, will spill over in the region through a number of transmission channels, such as trade in goods and services, commodity prices and investment, Moody’s said.
“Growth rates in Asia-Pacific and Asia-Pacific ex-China are now likely to converge, reflecting the lower growth impetus from China. However, the region will continue to expand faster than most other regions even as growth decelerates in 2024,” it added.
