IMF: China will become a key driver of economic growth in the Asia Pacific region this year

Xinhua News Agency, Beijing, May 3 (Xinhua) – The International Monetary Fund (IMF) recently released a report on the economic outlook for the Asia Pacific region, predicting a growth rate of 4.6% in 2023, higher than the 3.8% growth rate in 2022. Among them, the Chinese economy is expected to grow by 5.2%, which will become a key factor driving growth in the Asia Pacific region.

The report points out that although the world economy is full of challenges, the Asia Pacific region’s economy remains vibrant, mainly due to the rapid recovery of China’s economy and the resilience of India’s economic growth. It is expected that the Asia Pacific region will contribute as much as 70% to global economic growth this year.

The report states that although the Chinese economy is facing unfavorable factors such as declining international demand and tightening monetary policies in some major economies, domestic demand remains strong, providing new momentum for economic growth.

The report predicts that the economies of developed economies in the Asia Pacific region will grow by 1.6% in 2023, with Australia, Japan, and South Korea growing by 1.6%, 1.3%, and 1.5% respectively; Emerging markets and developing economies grew by 5.3%, with India, Indonesia, Malaysia, and Thailand growing by 5.9%, 5%, 4.5%, and 3.4%, respectively.

The report warns that global economic growth may slow down due to factors such as interest rate hikes in Western countries and the crisis in Ukraine, which have put pressure on economic activity. Meanwhile, high inflation rates in multiple countries and banking crises in the United States and some European countries have also brought many uncertainties to the economic outlook.

According to the latest forecast released by the IMF in April this year, the global economy will grow by 2.8% in 2023, and China’s contribution to global economic growth this year will reach 34.9%.

[I need to correct mistakes] Responsible editor