India and China are expected to contribute more than half of the global growth this year while the rest of Asia will contribute an additional quarter, according to the International Monetary Fund’s (IMF) recent blog. The IMF explained that China reported a faster-than-expected rebound in economic activity after it halted its zero-COVID policy and reopened in the second half of 2022.
The Washington DC-based lender added that Cambodia, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam are back to their robust pre-pandemic growth on border reopening, supply chain improvements, and the boom in the service sector.
The IMF furthermore stated that economic conditions in Asia and the Pacific started to improve with food and oil prices coming down.
The global lender noted, “These developments are helping improve prospects across the region, with growth set to accelerate to 4.7 per cent this year from 3.8 per cent in 2022. This will make it by far the most dynamic of the world’s major regions and a bright spot in a slowing global economy.”
The Russian invasion of Ukraine and the rise in policy rates by central banks across the globe were classified as the only impediments to economic activity due to the consequent rise in commodity prices and inflation concerns.