The Strategist

IMF forecast acceleration of GDP growth in APR countries in 2023

05/03/2023 - 10:02

The IMF reports that GDP growth in the Asia-Pacific region (APR) is expected to increase to 4.6 percent in 2023 from 3.8 percent in 2022, while the area is expected to contribute the most to global economic growth in that year.

According to the fund, China will account for 34.9% and India for 15.4% of the increase in the world economy this year. The primary driver of the growth will reportedly be China's economic recovery, where the country's sharp rise in spending spurs regional economic expansion.

The fund lists the need to maintain a strict monetary policy to control inflation and carefully monitor and regulate any potential impacts of the recent banking crises in Europe and the United States as the primary issues for the APR.

Long-term, slower productivity growth and unfavorable demographics are expected to cause China's economic development to significantly slow down, the IMF notes.