Today, the International Monetary Fund strengthened its forecast for economic growth in Asia, supported by China’s recovery, but at the same time warned of the repercussions of high inflation and global market volatility in light of the banking sector crises in the West.
The fund indicated that the reopening of the Chinese economy will form the basis for the region, with expectations that the impact in Asia will focus on consumption and demand in the services sector, and not on investment.
The International Monetary Fund said in its report on the economic outlook for the region, Asia and the Pacific will be the most dynamic among the major regions in the world in 2023, mainly supported by the optimistic outlook for China and India.. He added that, as is the case for the rest of the world, domestic demand is expected to remain the driver. The largest growth rate in Asia this year.
The IMF expected the Asian economy to grow 4.6% this year, after growing 3.8% in 2022, contributing about 70% to global growth. The Fund thus strengthened its forecast for the Asian economy by 0.3 percentage points from its estimates last October.
The report indicated that China and India will be the main drivers with growth of 5.2% and 5.9%, respectively, although the slowdown in growth in the rest of Asia is also expected to stop this year. But the International Monetary Fund cut its forecast for Asia’s growth for next year by 0.2 points to 4.4 percent, and warned of risks to the outlook, such as stubborn inflation and slowing global demand, as well as the impact of banking sector pressures in the United States and Europe.