Asia's Economic Dominance: A Powerhouse of Global Growth
IMF Official Highlights Asia's Role Amidst Global Economic Challenges
According to Krishna Srinivasan, director of the IMF's Asia and Pacific Department, Asia is currently contributing 60% to the global growth and stands as the powerhouse of the global economy.
Srinivasan noted that Asia is significantly dynamic, with a large, skilled labor force, deep integration into global supply chains, and a remarkable increase in productivity growth.
The latest International Monetary Fund (IMF) World Economic Outlook report projects an economic growth of 5.3% for emerging and developing Asia in 2024, compared to the global forecast of 3.2%.
Srinivasan emphasized that Asia's emerging markets are outperforming advanced economies which are facing issues such as interest rate tightening and weak domestic demand.
However, the region faces challenges like geo-economic fragmentation, the impact of artificial intelligence, and climate change.
In 2023, trade-restrictive measures worldwide tripled to 3,000 from the 2019 figures, raising concerns about regional fragmentation.
The ASEAN economies have benefited in certain sectors due to the US-China trade war, but Srinivasan warns that continued restrictions could lead to diminished global economic dynamism.
He urges policymakers to use forums like the Asia-Pacific Economic Cooperation (APEC) to reduce trade barriers and maintain multilateralism.
The report forecasts China's economic growth at 4.8% this year, with risks being balanced by recent policy support from Chinese authorities, aligned with IMF's recommendations for more fiscal support to rehabilitate the property sector.
Srinivasan noted that Asia is significantly dynamic, with a large, skilled labor force, deep integration into global supply chains, and a remarkable increase in productivity growth.
The latest International Monetary Fund (IMF) World Economic Outlook report projects an economic growth of 5.3% for emerging and developing Asia in 2024, compared to the global forecast of 3.2%.
Srinivasan emphasized that Asia's emerging markets are outperforming advanced economies which are facing issues such as interest rate tightening and weak domestic demand.
However, the region faces challenges like geo-economic fragmentation, the impact of artificial intelligence, and climate change.
In 2023, trade-restrictive measures worldwide tripled to 3,000 from the 2019 figures, raising concerns about regional fragmentation.
The ASEAN economies have benefited in certain sectors due to the US-China trade war, but Srinivasan warns that continued restrictions could lead to diminished global economic dynamism.
He urges policymakers to use forums like the Asia-Pacific Economic Cooperation (APEC) to reduce trade barriers and maintain multilateralism.
The report forecasts China's economic growth at 4.8% this year, with risks being balanced by recent policy support from Chinese authorities, aligned with IMF's recommendations for more fiscal support to rehabilitate the property sector.
