The International Monetary Fund (IMF) predicts that the world’s two most populous countries, China and India, will provide roughly half of global growth this year.
According to CNBC, the IMF upgraded its prediction for Asia-Pacific, stating that the region’s development will be primarily driven by China’s recovery and India’s “resilient” growth.
This estimate comes as the rest of the globe braces for slower growth as a result of tightening monetary policy and Russia’s invasion of Ukraine.
The organisation also predicted Asia-Pacific’s gross domestic product would expand to 4.6% this year, as against 3.8% last year which is 0.3 percentage points higher than its forecast in October.
In the May regional economic outlook released Tuesday, the IMF’s upgraded outlook indicated the region would contribute around 70% of global growth.
“Asia and Pacific will be the most dynamic of the world’s major regions in 2023, predominantly driven by the buoyant outlook for China and India,” the IMF said in its report.
“The two largest emerging market economies of the region are expected to contribute around half of global growth this year, with the rest of Asia and Pacific contributing an additional fifth.”
On a country basis, the organisation raised its growth outlook for China, Malaysia, the Philippines, and Laos to 5.2%, 4.5%, 6%, and 4% respectively.