Hyderabad and Bengaluru are likely to continue to outperform their Asia-Pacific and Indian counterparts in terms of growth to 2023, with the information and communications sector to be the main driver.
Posted on – Tue, 10 Jan 23 at 01:26pm
Hyderabad and Bengaluru are likely to continue to outperform their Asia-Pacific and Indian counterparts in terms of growth to 2023, with the information and communications sector to be the main driver.
Hyderabad: Hyderabad and Bengaluru are likely to continue to outperform their Asia-Pacific and Indian counterparts in terms of growth to 2023, with the information and communications sector to be the main driver.
The massive information and communications industry will help weather a downturn in global merchandise trade, according to a report from economic consultancy Oxford Economics, which uses its data-driven economic and business insights to aid decision-making.
Oxford Economics expects 2023 to be a difficult year for cities in the Asia-Pacific region. However, it saw some bright spots. Notably, it expects cities less affected by weaker global trade and those with strength in fast-growing industries to show some resilience. It lists 25 cities in the Asia-Pacific region, with Hyderabad in second place after Bangalore.
Hyderabad’s GDP growth rate is likely to be around 6.5%, lower than Bengaluru’s around 6.75%, it said. Shanghai’s GDP may grow around 5.5%, Bangkok and Ho Chi Minh City around 4.5%, while Beijing, Kuala Lumpur and Jakarta may be below 4%. GDP growth in Taipei is likely to be around 1.5%, while growth in Hong Kong, Seoul, Tokyo, Singapore and Sydney is likely to be 1% or lower. The average growth rate of 33 cities is lower than 3%.
The advisory further said Chinese cities could benefit from easing Covid-19-related restrictions in 2023.
Growth in Ho Chi Minh City will slow significantly in 2023, but will remain one of the fastest-growing cities in the region, partly due to diversification of global supply chains, it said.Also, Bangkok will be one of the
One of the few cities in the Asia-Pacific region whose economic growth will accelerate in 2023. The return of tourists is a key driver of this forecast.
In China, Shanghai and Beijing are likely to benefit from reduced Covid-19-related restrictions in 2023. Recent announcements do seem to point in that direction, but the road to normalization is still long.
The pace of improvement in consumer confidence will be tentative, although consumer-oriented sectors such as retail trade and hospitality are expected to do better than industry. Among advanced Asia-Pacific cities, it expects Taipei to outperform Seoul, which will outperform Tokyo in terms of GDP growth in 2023.
Oxford Economics forecasts that Taiwan’s capital will benefit from a delayed reopening and catch-up growth in 2023. In Australia, Brisbane fared relatively well thanks to healthy population growth.
