Indian cities’ growth will outpace rest of APAC in 2024

Economic growth will generally remain subdued across major APAC cities in 2024. Nevertheless, we think that some cities will stand out for their better performance. These cities are either located in an economically dynamic country, as is the case for Bengaluru and Hyderabad, or will benefit from somewhat better prospects for their manufacturing sectors, for instance Singapore.

What you will learn:

• Indian cities will be on a rapid growth path of their own in 2024. Fuelled by strong private consumption growth, service sectors, especially the wholesale and retail trade and information and communications sectors, will continue to expand rapidly. As such, we predict Bengaluru’s and Hyderabad’s economies to outperform the other major cities of the region in 2024.
• We forecast a divergent pattern across advanced APAC cities. Singapore should recover after a lacklustre 2023, in part thanks to the global semiconductor cycle entering a phase of recovery. Tokyo and Seoul’s growth will weaken, due to sluggish wholesale and retail activity.
• Meanwhile, we expect China’s major cities to grow at a slower pace in 2024, as the effects of their post-Covid-19 economic boosts fades. However, cities with strength in the new economy should still outperform their peers and grow faster than China as a whole.