This figure is virtually unchanged from last year, later moderating to 4.1 percent, Thomas Helbling, deputy director of the IMF’s APAC department, told reporters at a news conference in Hong Kong on the region’s economic outlook.
“This is a better profile than what we had in April… Inflation is quite different across the region… The region is once again set to contribute the majority of global growth, around 60 percent this year and next,” he said.
The IMF recently projected that the Asia-Pacific region will grow 4.5 percent in 2025. This figure is virtually unchanged from last year, and will then moderate to 4.1 percent. He is also satisfied with Bangladesh’s performance in controlling inflation and maintaining foreign exchange reserves, but is not convinced regarding the country’s tax-GDP ratio due to a shortfall in revenue collection targets.
“…What explains this resilience? And I would identify three key factors: strong exports, technical and accommodative macroeconomic policies, reinforced by example and financial institutions,” he said, as quoted by the IMF.
The Indian economy is expected to grow at a healthy pace of 6.6 per cent this year, while the Chinese economy has remained resilient despite rising tariffs, with robust growth in the first half of this year driven by fiscal intervention and strong exports, it noted.
Association of Southeast Asian Nations (ASEAN) countries are projected to grow 4.3 percent this year and next, still supported by export strength and some countries by political support, he said.
Average growth in Asia has declined relative to the pre-pandemic period. And there are a number of factors of concern from a growth perspective: an aging population, lower productivity, the economic scars of the pandemic, rising youth unemployment, long-term dissatisfaction, and a lack of jobs and opportunities. This is weighing on confidence, but also on prospects, Helbling added.
Meanwhile, the IMF recently said it is satisfied with Bangladesh’s performance in controlling inflation and maintaining foreign exchange reserves, but is not convinced regarding the country’s tax-to-gross domestic product (GDP) ratio due to a shortfall in revenue collection targets.
The observations came after the first round of meetings in Dhaka as part of the IMF’s Fifth Review Mission to the country.
The mission, led by Chris Papageorgiou, will remain in the country until November 13 for a thorough review and talks with the Bank and Bangladesh ministries.
Fiber2Fashion News Desk (DS)
