The International Monetary Fund said in its blog post that India and China account for more than half of the global growth rate even though the entire world is in the grip of economic recession. Experts say that the Chinese market is opening up in view of the growing demand, and the growth rate is likely to pick up in this context.
First Published Feb 21, 2023, 3:06 PM IST
All over the world, many countries including the US and European Union countries are facing financial crisis. In such circumstances, the International Monetary Fund estimates that India, China and India will contribute more than 50 percent to global growth in the current year. At the same time, other countries in Asia contribute a fourth. This was stated by the International Monetary Fund (IMF) in a blog post on Monday.
Due to Corona, many developing countries in Asia have supply chain problems which are now coming to an end, according to the IMF. Along with this, there is a boom in the service sector. Countries like Cambodia, Indonesia, Malaysia, Philippines, Thailand and Vietnam are also seeing growth before the Corona epidemic. The IMF said the economic challenges seen in Asia and the Pacific over the past year are now improving.
Furthermore, inflation in India is likely to moderate in the coming year. According to the IMF, the growth rate in 2023 may increase from last year. Last year’s growth rate was 3.8 percent and this year’s growth rate is expected to reach 4.7 percent. Moreover, the slowdown in the global economy will be seen, due to which the sector will grow rapidly again, it said.
That is why the central bank wants to reduce interest rates, IMF said. However, all central banks should be cautious as core inflation is very high at the moment. Due to strong demand, China has begun to reopen its economy, which is expected to cause inflation to rise once again.
According to IMF, inflation is likely to decrease in Asian countries. It said it expects inflation to return to the central bank’s targets next year. The IMF said inflation may fall on the central bank’s targets next year once the financial and commodity crisis subsides.
Last Updated Feb 21, 2023, 3:06 PM IST