Asia-Pacific are to contribute 70% of global economic growth in 2023: IMF

Photo: Xue Jingwen/VCG via Getty Images

The Asia-Pacific remains the world’s most dynamic region and will carry much of global growth this year against a somber economic backdrop, officials from the International Monetary Fund (IMF) said in Beijing on Thursday following the release of a new report.

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The IMF’s newly-released Economic Outlook for Asia Pacific has painted a more optimistic picture for the region and expects the economies of Asia and the Pacific are expected to contribute about 70 percent of global economic growth in 2023, a significantly larger share than that of the past few years.

In the report, the IMF also raised its forecast for Asia-Pacific economic growth to 4.6 percent in 2023, which largely reflects China’s recovery as well as the resilient development in India.

Officials from the organization also say that China’s reopening this year has boosted growth prospects and provided momentum for near-term growth across the Asia-Pacific.

Speaking at an IMF news conference in Beijing on Thursday, Thomas Helbling, deputy director of the Asia and Pacific Department under the IMF, said that the Asia-Pacific will be the most dynamic of the world’s major regions in 2023, driven by the buoyant outlook for China and India.

“Global inflation is easing, but it remains stubbornly high, and banking strains in the United States and Europe have injected greater uncertainty in an already complex economic environment. That said, despite this somber backdrop, the Asia-Pacific region remains dynamic and is carrying much of the global growth this year," said Helbling.

Meanwhile, when asked about the potential risks caused by recent banking turmoil in the United States and elsewhere, Krishna Srinivasan, director of the IMF's Asia and Pacific Department, acknowledged that the year ahead will be challenging for the global economy but emphasized the view that the Asia-Pacific region is well placed to deal with these issues.

“We have to be humble and recognize the fact that we don’t know where the pressure was building for sure, but you have to be vigilant and take proper measures when you see the problem.” said Srinivasan.

Other major issues, such as the internationalization of the Chinese yuan, the broader risks facing the global economy, the continuing post-pandemic recovery, and the transition to a more sustainable economy, were also discussed during the press conference in the Chinese capital.

At an IMF press briefing on the Economic Outlook for Asia Pacific and Korea held in South Korea’s Incheon last week, officials also noted China’s development potential in 2023, saying that the country's rebound is the biggest driver of Asia's upward growth revision this year.