The International Monetary Fund (IMF) has predicted that the two world’s most populous countries – China and India are expected to contribute to around half of the global growth this year.
IMF raised its forecast for Asia-Pacific, noting the region’s growth will be basically driven by China’s recovery and “resilient” growth in India, according to CNBC.
This forecast was released even as the rest of the world braces up for slower growth from tightened monetary policy and Russia’s invasion of Ukraine.
The organisation also predicted Asia-Pacific’s gross domestic product would expand to 4.6% this year, as against 3.8% last year which is 0.3 percentage points higher than its forecast in October.
In the May regional economic outlook released Tuesday, the IMF’s upgraded outlook indicated the region would contribute around 70% of global growth.
“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 IMF said in its report.
“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.”
On a country basis, the organisation raised its growth outlook for China, Malaysia, the Philippines, and Laos to 5.2%, 4.5%, 6%, and 4% respectively.
