The International Monetary Fund (IMF) said on Monday that India and China would contribute more than half of worldwide growth this year, and other Asian countries would contribute about 25 percent.
This year, the Asia-Pacific (APAC) region is expected to be the bright spot in the global economy, according to the 4.7% growth forecast for 2023, compared with 3.8% last year. The IMF also said that Indonesia, Cambodia, Malaysia, Thailand, Vietnam, and the Philippines are back to their pre-pandemic growth.
For China, the economic activities have been attributed to the rollback of the zero Covid policy and its reopening. The IMF expected China’s economy to recover, which would have a positive impact on Asia’s economies.
The global financial agency forecast that the real India’s GDP growth is expected to be 6.8%, the second rank together with Vietnam among the emerging economies in Asia.
Mongolia ranked first in this category, with forecasts predicting 7% growth in 2024.
The IMF stated that, while the short-term outlook is positive, some significant long-term challenges remain unresolved due to the fact that many Asian countries are in debt and distress, and that the authorities must continue with plans for gradual fiscal consolidation to ensure that monetary and fiscal policies do not conflict.