May 3, 2023
The APAC region is expected to experience a growth of 4.6% this year, up from the 3.8% recorded in 2022
The region will contribute around 70% of global growth
China and India are expected to contribute to around 50% of global growth this year
The IMF recommended policymakers in the APAC region remain cautious
India and China are expected to be the main contributors to the growth of the Asia-Pacific (APAC) region in 2023, according to a report from the International Monetary Fund (IMF).
According to the report, the region will experience a growth of 4.6% this year, up from the 3.8% recorded in 2022, and contribute around 70% of global growth.
Additionally, China and India are expected to contribute around 50% of global growth this year, with the rest of the region contributing an additional fifth. The growth in the APAC region is also getting a fresh impetus from China’s reopening of its economy after extended Covid-related restrictions
The report emphasized that the growth in Asia will be driven primarily by China’s recovery and the resilient growth in India. In contrast, the growth in the rest of Asia is expected to bottom out in 2023, in line with other regions.
However, the IMF also noted that the global economy faces challenges in 2023 due to the effects of monetary policy tightening, Russia’s war in Ukraine, and persistent inflationary pressures. Recent financial sector problems in the US and Europe have also added uncertainty to the already complex economic landscape and recommended that policymakers in the APAC region remain cautious.
Source: Economic Times