Economic outlook 2024: Asia Pacific

In 2024, consumers and businesses around the globe will make difficult decisions about how to spend and invest, according to the Mastercard Economic Institute’s Economic Outlook 2024 report.

Resources will be carefully prioritized as interest rates, wages and prices remain high relative to pre-pandemic levels. However, moderating inflation, steady read economic growth and varied regional dynamics will sustain consumer empowerment.

Here’s how the dynamics are playing out in Asia Pacific.

• Household budgets in Asia Pacific are likely to be dependent on central bank policies and how long mortgage costs stay high for, or how much it has risen.
• Income disparities between affluent and mass market consumers tend to be wider in emerging than developed economies with lower income. Household budgets allocated to discretionary goods may be slower to recover in emerging markets as inflation-adjusted incomes recover this year given the sharp rise in essentials the past couple of years.
• Mass market consumers spend a higher share of their wallet relative to affluent consumers on essentials. Any unforeseen shocks to prices of essentials may drive another round of cutbacks in discretionary purchases.