SINGAPORE, Oct. 18 — Economic activity in the Asia-Pacific region remains on track to contribute about two-thirds of global growth in 2023, the International Monetary Fund (IMF) said in its October 2023 Regional Economic Outlook for Asia and Pacific released here on Wednesday.
Growth in the region is projected at 4.6 per cent in 2023, an increase from 3.9 per cent in 2022, and broadly as projected in IMF’s May 2023 Regional Economic Outlook, reported Xinhua.
The Asia and Pacific region remains a relatively bright spot compared to the 3-per cent expected global growth this year. Its growth is projected to moderate to 4.2 per cent in 2024.
As for inflation, the IMF said that inflation for all economies in the Asia-Pacific, with the exception of Japan, would fall within central bank targets by the end of 2024. The rest of the world, however, will not see inflation returning to the target ranges until 2025 at the earliest.
The boost from China’s reopening in the first half of the year was above expectations. Abrupt financial tightening in the United States or within the region would inhibit growth, especially in highly leveraged economies and sectors.
Strengthening multilateral cooperation and mitigating the effects of fragmentation are vital for Asia’s medium-term outlook, according to the IMF.
— Bernama-Xinhua
