Jakarta. ASEAN+3 region’s economy is set to expand by 4.5 percent in 2024 with Indonesia possibly witnessing a 5.2 percent growth this year, according to a report.

The ASEAN+3 Macroeconomic Research Office (AMRO) recently published its quarterly update of the regional economic outlook. The ASEAN+3 encompasses all 10 of the bloc’s member states, while also including China, Hong Kong, Japan, and Korea. 

The January report shows that AMRO decided to maintain its 4.5 percent outlook for ASEAN+3. AMRO attributes the growth to improving external demand amid resilient domestic demand. Tourism rebounds to pre-pandemic levels, coupled with the gradual recovery of China’s property sector, will also spur regional growth.

“Nevertheless, the moderation of growth in the US and the euro area is likely to limit the extent of the improvement in regional exports. Regional exporters’ subdued optimism on future orders as reflected in recent purchasing managers’ index surveys highlights the continued uncertainty surrounding the outlook for trade,” the AMRO report reads.

Indonesia’s gross domestic product (GDP) is set to grow at 5.2 percent this year, much higher than some of its ASEAN counterparts but still less than Cambodia, Vietnam, and the Philippines. Vietnam’s GDP is projected to grow at 6 percent, while Cambodia’s economy will expand at 6.2 percent. The Philippines is forecast to be the fastest-growing ASEAN economy in 2024 as the AMRO predicted a 6.3 percent growth.

The 2023 GDP growth for ASEAN+3 is expected to stand at 4.4 percent. Indonesia is forecast to expand by 5 percent in 2023. 

Bank Indonesia earlier this week revealed its national economic outlook.

The central bank put Indonesia’s GDP growth outlook to range between 4.7 percent and 5.5 percent for 2024.

“As for 2023, we [Indonesia] will likely see an economic growth of between 4.5 and 5.3 percent, underpinned by consumption and investment. Substantial government spending at the end of the year, coupled with the acceleration of the national strategic projects, are also the drivers,” Bank Indonesia governor Perry Warjiyo said Wednesday.