Overview 

• Growth

Most economies in developing East Asia and Pacific (EAP), other than several Pacific Island Countries, have recovered from the succession of shocks since 2020 and are continuing to grow, albeit at a slower pace (figure O1). China’s economy slowed to 0.8 percent (q/q) in the second quarter of 2023, after growing by 2.2 percent (q/q) in the first quarter. The rest of the region grew at an estimated 1.0 percent (q/q) in both the first and the second quarter of 2023.

• Determinants

Economic performance in the region is being shaped by both external and domestic developments (figure O2). The key external factors are slowing global growth, still tight financial conditions and trade and industrial policies. Among the domestic factors, the most important are the legacy of amplified public and private debt and the macroeconomic policy stance.