IMF raises 2024 Asian growth forecast
According to the IMF report, while Asia Pacific grew by 5 percent last year, growth is expected to drop to 4.5 percent this year and 4.3 percent in 2025.
The International Monetary Fund (IMF) on Tuesday raised its 2024 Asian growth forecast as it remained optimistic about India’s growth and focused on the need for more stimulus from China.
The IMF expects the Asian economy to grow by 4.5 percent this year, an increase of 0.3 points compared to six months ago. The 2025 forecast remained unchanged at 4.3 percent.
“The outlook for Asia and the Pacific in 2024 has brightened: We now expect the region’s economy to slow less than we previously anticipated as inflation pressures continue to dissipate,” said Krishna Srinivasan, IMF’s director for Asia and the Pacific.
He also called India the “fastest growing major economy in the world” where “public investment remains a key driver”. India is currently the world’s fifth largest economy with a GDP of $3.7 trillion and aims to become the world’s third largest economy by 2027.
The IMF’s Srinivasan also wrote that strong private consumption will continue to support growth in Asia’s other emerging markets.