APAC to grow by 4.6% in 2023; India, China to lead global growth: IMF

In its ‘Regional Economic Outlook—Asia and Pacific’ released recently, it said the region would contribute around 70 per cent of global growth.

"Asia and Pacific will be the most dynamic of the world's major regions in 2023, predominantly driven by the buoyant outlook for China and India," the report said.

India and China are expected to contribute around half of global growth this year, with the rest of APAC contributing an additional fifth, it forecast.

"Asia's dynamism will be driven primarily by the recovery in China and resilient growth in India, while growth in the rest of Asia is expected to bottom out in 2023, in line with other regions," it noted.

This year looks to be challenging for the global economy, with global growth decelerating as the effects of monetary policy tightening (through consistent interest rate hikes) and Russia's war in Ukraine continue to weigh on economic activity, IMF noted.

Persistent inflationary pressures and recent financial sector problems in the United States and Europe are also injecting additional uncertainty into an ‘already complex economic landscape’, it said.

The APAC growth is also receiving a fresh impetus from China's reopening of its economy after extended COVID-related restrictions. However, this dynamic outlook does not imply that policymakers in the region can afford to be complacent, IMF cautioned.

"Monetary policy should remain tight until inflation falls durably back within target. The exceptions are China and Japan, where output is below potential and inflation expectations have stayed muted," it added.

Fibre2Fashion News Desk (DS)