World Economic Outlook 2023: India and China are expected to contribute almost half of the global growth this year.
New Delhi:
Economic Outlook 2023: The International Monetary Fund (IMF) has released its economic outlook for the Asia-Pacific region on Monday. According to the IMF, this year, India and China will account for 70% of the global economy. At the same time, due to the epidemic pandemic (Kovid-19 pandemic) and the Russia-Ukraine war (Russia Ukraine War), the decline in the economy of the rest of the world will continue this year as well. The IMF has raised its risk to the Asia-Pacific region in the Regional Economic Outlook, given China’s recovery and India’s responsibility.
Asia-Pacific’s GDP to remain at 4.6% from the official 3.8%
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In its new report, the IMF has estimated that the GDP growth of Asia-Pacific this year will remain at 4.6% from last year’s 3.8%. This is 0.3% higher than the IMF forecast in October. In a previous forecast, the IMF said that Asia’s two largest emerging companies are expected to contribute nearly 100 to global partnerships this year. However, according to the IMF’s ranking outlook, these economies will contribute 70% globally.
India-China expected to contribute nearly half of global growth
The IMF said in its report, “Asia-Pacific will grow fastest among the world’s major regions in 2023, driven mainly by the narrow outlook for China and India. is expected to contribute about half, while the rest of Asia and the Pacific will contribute an additional 20%.”
Economic Outlook for India Sinks to 5.9%
On a country basis, the IMF lowered the outlook for China to 5.2%, Malaysia to 4.5%, the Philippines to 6% and the Blues to 4%. At the same time, for India, the IMF has expected that its account outlook will increase to 5.9% in 2023.
IMF reduced the economic outlook for these countries
Despite being optimistic about global growth, the IMF has downgraded its outlook for Japan, Australia, New Zealand, Singapore and South Korea. Japan’s credit outlook has been lowered to 1.3% in 2023 due to weak external demand, a reduction in investment and decisions in the last quarter of 2022. At the same time, this year’s growth outlook is also expected to be lower by 1.6% and 1.1%, as domestic demand weakens strongly in central regions in Australia and New Zealand.
Banking crisis in America-Europe has no significant impact on Asia
With regard to the outlook, the IMF noted the tightening of monitoring linkages and the supply chain crisis. The IMF has said that despite the recent bank direct-upheaval in the US and Europe, it has not seen a significant impact in Asia.