Ajit Karn
According to the IMF, growth in the dynamic Asia-Pacific region is expected to increase to 4.6% this year, up from 3.8% in 2022. India and China are expected to play a significant role in driving this growth.
reported by media that the Washington-based fund’s Regional Economic Outlook – Asia and Pacific report stated that the region would contribute around 70% of global growth.
Asia and the Pacific will be the most dynamic of the world’s main regions in 2023, driven primarily by China and India, according to an IMF report.
In addition, the two greatest emerging market economies of the region are anticipated to contribute approximately half of the global growth this year, with the remainder of Asia and the Pacific contributing the remaining fifth.
“Asia’s dynamism will be driven primarily by the recovery in China and resilient growth in India, while the rest of Asia’s growth is expected to bottom out in 2023, in line with other regions,” the report stated.
The IMF predicts that 2023 will be a difficult year for the global economy, with global growth decelerating as the effects of monetary policy tightening (consistent interest rate hikes) and Russia’s conflict in Ukraine continue to weigh on economic activity.
In addition, persistent inflationary pressures and recent financial sector issues in the United States and Europe have injected additional uncertainty into a “already complex economic landscape,” according to the report .
Silicon Valley Bank, one of the most prominent lenders in the world of technology firms, initially failed on March 10 due to a run on the bank by depositors. Monday, First Republic Bank was among the institutions that were forced to close as a result of the contagion caused by its closure.
The collapse of a few regional banks in the United States, which began with Silicon Valley Bank, has sent shockwaves throughout the global banking industry and sparked concerns of an economic contagion.
China’s reopening of its economy after protracted Covid-related restrictions provides a further boost to the Asia-Pacific region’s economic expansion.
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However, the IMF cautioned that policymakers in the region cannot afford to be complacent despite the region’s optimistic outlook.
