IMF boosts Asia's economic projection on China's economic comeback

Posted on May 8, 2023   |  

The International Monetary Fund (IMF) increased Asia's economic forecast because China's comeback prompted growth. 

However, risks from ongoing inflation and an unstable global market caused by the Western banking sector woes still loom.

The Asian economy is expected to grow by 4.6% in 2023, contributing 70% of global growth, upgrading its forecast by 0.3% from October.

India and China will be important drivers with an increase of 5.2% and 5.9%, respectively, though development in the rest of Asia is expected to decrease in 2023.

The IMF also advised central banks in Asia except Japan and China, to tighten monetary policy to mitigate inflation.