IMF Boosts Growth Forecast for Asia Amid Rosier Outlook for China and India

The International Monetary Fund (IMF) has raised its growth forecast for Asia in 2024, citing improved prospects for the region’s two largest economies, China and India. According to the IMF report, Asia is expected to expand by 4.5% this year, reflecting a 0.3 percentage point increase from the previous forecast. This growth, however, marks a slowdown from the 5% pace seen last year. The IMF highlighted stronger-than-expected first-quarter growth in China, driven by robust exports and manufacturing demand, leading to the possibility of an upward revision in China’s growth outlook. Additionally, India’s growth forecast has been revised upward due to increased government stimulus. Despite the improved outlook, the IMF warned of risks such as a potential property sector downturn in China, fiscal deficits, and trade tensions between the US and China. Moreover, Asian nations were cautioned against overly relying on the Federal Reserve’s monetary policy decisions, as demonstrated by Indonesia’s recent unexpected interest rate hike in response to currency depreciation.

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