The Boao Forum for Asia Research Institute on Tuesday forecast that Asia's economy will grow by 4.5 percent this year, up from 4.3 percent last year.

The forecast came as the Boao Forum for Asia Annual Conference 2024 kicked off on Hainan.

Secretary General of the Boao Forum for Asia Li Baodong said while the continent faces challenges, including geopolitical tensions and extreme weather, growth will continue, especially in the South Asian region.

"India, Indonesia as well as Saudi Arabia are among the Asian developing economies that have very good growth prospects, and Asia will continue to be the region contributing the most to world economic growth,” Li said.

He added that China’s economy will also continue to see resilient growth.

Zhang Yuyan, Director of the Institute of World Economics and Politics under the Chinese Academy of Social Sciences, told the forum that Asia's trade fell nine percent year-on-year in the first three quarters of 2023 and there was a 12 percent drop in foreign direct investment in developing countries.

He said while such pressures could persist in the year ahead, the situation may improve thanks to factors such as an accelerated growth in digital trade and a faster recovery of the tourism industry.

“The Regional Comprehensive Economic Partnership.... has also continued to push forward on its economic arrangements. There's also the restructuring of Asian value chains and supply chains. All of these are positive factors that could promote Asian trades,” he added.

With the theme "Asia and the World: Common Challenges, Shared Responsibilities", the four-day Boao event is said to have attracted some 5,000 participants this year.

It will feature four sections covering the world economy, technology and innovation, social development, and international cooperation.

Zhao Leji, chairman of the National People's Congress Standing Committee, will deliver a keynote speech at the forum on Thursday.

Chief Secretary Eric Chan will also attend the event.