International
IMF raises economic outlook for Asia, boosted by China's recovery
May 02, 2023 | 12:10 PM
The International Monetary Fund (IMF) today raised its forecast for Asia-Pacific economic growth, saying the regions growth will be primarily driven by Chinas recovery.But the IMF warned against the consequences of high inflation and global market volatility in light of the West's banking crises.The IMF noted that the reopening of China's economy would form the pillar of the region, with expectations that the impact in Asia would be on consumption and demand in the services sector rather than investment.According to the IMF report, Asia and Pacific will be the most dynamic of the worlds major regions in 2023, predominantly driven by the buoyant outlook for China and India. As in the case of the rest of the world, domestic demand was expected to remain the biggest driver of growth across Asia in the current year.The IMF forecast Asia's economy to grow 4.6% this year after 3.8% growth in 2022. The IMFs upgraded outlook would mean the region would contribute around 70% of global growth, it said.China and India will be the main drivers with growth of 5.2% and 5.9% respectively, and growth slowdown in the rest of Asia is also expected to stop this year. But the IMF lowered its forecast for Asia's growth next year 0.2 points to 4.4%, warning of risks to expectations such as intractable inflation and slowing global demand as well as the impact of banking pressures in the United States and Europe.
May 02, 2023 | 12:10 PM