IMF Boosts Growth Forecast for Asia, Cautions Against Risks in China
Emerging economies in Asia set for 5.2% expansion in 2024, driven by stronger-than-expected performance in China.
The International Monetary Fund (IMF) has raised its growth forecast for emerging Asian economies in 2024, projecting a 5.2% expansion. This upward revision, announced on Tuesday, reflects a more optimistic outlook fueled by robust economic activity in China, the region's largest economy.
In its latest World Economic Outlook, the IMF anticipates that emerging and developing Asia will experience continued growth, with a projected expansion of 4.8% in 2025. China, in particular, has seen its growth estimate for 2024 revised upward by 0.4 percentage points to 4.6%. This adjustment comes on the heels of increased government spending, contributing to the country's economic resilience.
Despite the positive momentum, the IMF also highlights potential risks that could affect China's growth trajectory. Concerns center around the possibility of unintended fiscal tightening measures, which may dampen consumer confidence and hinder economic recovery. The IMF emphasizes the importance of implementing comprehensive reforms in China's property sector to sustain growth momentum effectively.
In contrast, India is expected to maintain robust growth, with forecasts indicating a 6.5% expansion in both 2024 and 2025, driven by resilient domestic demand. However, Japan's growth outlook appears more subdued, with the IMF projecting a slowdown to 0.9% in 2024 as the initial boost from the easing of pandemic-related restrictions dissipates.
The IMF's revised growth projections underscore the dynamic economic landscape in Asia, highlighting both opportunities and challenges for the region's economies as they navigate the path to recovery.