Categories: World

Asia-Pacific to grow 4.6 pc in 2023; India, China to contribute half of global growth: IMF

According to the International Monetary Fund, growth in the dynamic Asia-Pacific area is expected to surge to 4.6 percent this year, up from 3.8 percent in 2022, with India and China leading the way.

The Washington-based fund stated in its Regional Economic Outlook – Asia and Pacific study issued on Tuesday that the region will provide around 70% 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 IMF report said, adding that the two largest emerging market economies of the region are expected to contribute around half of global growth this year, with the rest of Asia and Pacific contributing an additional fifth.

“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 added.

Meanwhile, the IMF predicts that 2023 will be a difficult year for the global economy, with global growth slowing as the effects of monetary policy tightening (via consistent interest rate hikes) and Russia’s war in Ukraine continue to weigh on economic activity.

Vaishali Sharma

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