NEW DELHI: According to the International Monetary Fund (IMF), China and India together will account for about half of the global growth this year, underscoring Asia’s increasing clout in the world economy.
The Washington-based global financials body now estimates growth in the Asia Pacific region to be at 4.6% this year, some 0.3 percentage points higher than expected in October, and faster than the 3.8% last year — mostly due to China’s reopening. It estimates that the region as a whole will contribute more than 70% of global growth this year. It will be mainly driven by the recovery in the Chinese economy and resilient growth in the Indian economy. The economic growth rate is expected to reach the lowest level in 2023 in most of the economies of other regions.
The IMF has cut India’s economic growth forecast for the current financial year to 5.9 per cent from 6.1 per cent earlier. However, despite this, India will remain the fastest growing economy in the world.
