Sunday, April 14, 2024

India, China to contribute over half of global growth this year: IMF

Immigration News

Fidel Rahmati
Fidel Rahmati
Fidai Rahmati is the editor and content writer for Khaama Press. You may follow him at Twitter @FidelRahmati
International Monetary Fund (IMF)
India and China are expected to contribute more than half of the world’s growth this year, with the rest of Asia providing an extra quarter, according to a report by the International Monetary Fund on Monday.

With China ending its Covid Zero policy and reopening in the second half of 2022, economists have changed their outlook to be more optimistic. The Indian economy has also displayed promising indicators, ranking among the fastest-growing in the world over the previous two years.

The report indicates that factors like the war in Ukraine and the rise of the central bank to fight inflation were highlighted as factors constraining economic activity. 

Meanwhile, the Covid-19 pandemic was another factor before the Russia-Ukraine war, constraining the average pace of economic trade among the countries.

All these factors led to increase oil and foodsuffs prices which can also undermine the Asian country’s growth. 

However, the price of oil and foodstuffs have come down in “Cambodia, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam to pre-pandemic, which can be a positive sign.

Many organizations, including International Monetary Fund (IMF), predicted that India is better off than many global economies and will have the highest growth in the coming years. The growth rate has been expected in India at a rate of 6.5 to 7 per cent in the coming years. 

The IMF also said that the conditions in Asia and the Pacific are far better than two years ago.

“These developments are helping improve regional prospects, with growth set to accelerate to 4.7 per cent this year from 3.8 per cent in 2022. This will make it by far the most dynamic of the world’s major regions and a bright spot in a slowing global economy,” it added.

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