IMF raises growth forecast for 2023 in Asia with recovery in China

The International Monetary Fund (IMF) raised its economic growth expectations for Asia, supported by China’s recovery, but warned of the risks stemming from ongoing inflation and the volatility of the Western banking sector in global markets.

The IMF raised its growth forecast for the Asian economy this year by 0.3 percentage points to 4.6 percent, compared with expectations it announced in October. The Asian economy grew by 3.8% in 2022, contributing almost 70% to global growth.

The IMF affirmed that the reopening of China’s economy to the world will be very important for the region and that the focus in Asia will be on demand for consumption and services rather than investment.

THE WORLD WILL BE THE MOST DYNAMIC REGIONS

In its regional economic outlook report, the IMF states that “Asia and the Pacific are predominantly in China and India. of the strong look By finding support, they will be the most dynamic regions in the world in 2023.”

According to the IMF report, China and India will lead the region’s economic growth in 2023, with growth of 5.2% and 5.9%, respectively.

The IMF, which lowered its expectation of economic growth in Asia by 0.2 points to 4.4 percent for 2024, warned about the effects of inflation, which may take longer than expected, the slowdown in world demand and the pressure effects on the US and European banking sector. (Reuters)