The International Monetary Fund (IMF) raised its economic outlook for Asia-Pacific, seeing recovery in China and resilient growth in India to drive the economy in the region.
The revised outlook came as the global economy is expecting to take a hit from a slow down from tightened monetary policy and the ongoing war between Russia and Ukraine.
The IMF expected economic growth in Asia-Pacific to expand 4.6% in 2023, up by 0.3 percentage points from its forecast in October last year. Gross domestic product in 2022 for the region was 3.8%.
The new growth outlook indicates that the region’s economic expansion would contribute around 70% of global growth this year.
The organization said that 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 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,” the IMF said in its latest May regional economic outlook.