IMF raised its 2023 growth forecast for Asia by 0.3% to 4.6%, outpacing the 3.8% growth rate in 2022. For 2024, the growth projection has been slightly downgraded by -0.2% to 4.4%.
The growth forecast for advanced economies in the region was downgraded by -0.4% to 1.6% in 2023 and by -0.2% to 1.7% in 2024. Meanwhile, emerging markets and developing economies experienced an upgraded growth forecast of 0.3% to 5.3% in 2023, although their 2024 projections were downgraded by -0.1% to 5.1%.
IMF highlighted that “Asia’s domestic demand has so far remained strong despite monetary tightening, while external appetite for technology products and other exports is weakening”.
However, the organization warned that “Global growth is poised to decelerate as rising interest rates and Russia’s war in Ukraine weigh on activity. Inflation remains stubbornly high, and banking strains in the United States and Europe have injected greater uncertainty into an already complex economic landscape.”
