West News Wire: The International Monetary Fund (IMF) forecasts that growth in the dynamic Asia-Pacific area would improve to 4.6% this year from the 3.8% recorded in 2022, with India and China expected to take the lead in much of that growth.
The Washington-based fund predicted that the Asia and Pacific area would contribute almost 70% of global growth in its Regional Economic Outlook Asia and Pacific study, which was published on Tuesday, according to ANI.
According to the IMF report, “Asia and the Pacific will be the most dynamic of the world’s major regions in 2023, primarily driven by the buoyant outlook for China and India.”
It added 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 the Pacific contributing an additional fifth.
“Asia’s dynamism will be driven primarily by China’s recovery and resilient growth in India, while growth in the rest of Asia is expected to bottom out in 2023, in line with other regions,” the report said.
The IMF added that 2023 appears to be a difficult year for the world economy, with global GDP slowing as the consequences of tighter monetary policy (through repeated increases in interest rates) and Russia’s conflict in Ukraine continue to weigh on economic activity.
Additionally, a “already complex economic landscape” was made more uncertain by ongoing inflationary pressures and recent financial sector issues in the US and Europe, according to the report, which was quoted by ANI.
One of the most prominent lenders in the world of technology startups, Silicon Valley Bank, which was struggling, first collapsed on March 10, after a run on the bank by the depositors. Its closure led to a contagion effect and the subsequent shutting down of other banks, including First Republic Bank on Monday.
The failure of a few small regional US banks, which began with Silicon Valley Bank, has had an impact on the worldwide banking sector and raised concerns about an economic chain reaction.
The reopening of China’s economy following prolonged COVID-related restrictions is giving the region’s growth a new boost.
IMF issued a warning, however, that this dynamic outlook does not suggest that regional authorities can afford to be lax.
