That’s broadly unchanged from last year, and then moderate to 4.1 per cent, Thomas Helbling, deputy director of IMF’s APAC department, told reporters in a press briefing in Hong Kong on the region’s economic outlook.
“This is a better profile than we had in April….Inflation is quite different across the region….The region is once again set to contribute the lion’s share of global growth, about 60 per cent of this year and the next,” he said.
The IMF recently projected that the Asia-Pacific region will grow by 4.5 per cent in 2025.
That’s broadly unchanged from last year, and then moderate to 4.1 per cent.
It is also satisfied with Bangladesh’s performance in controlling inflation and maintaining foreign currency reserves, but is unconvinced regarding the country’s tax-to-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, financial institutions,” he was quoted as saying by the IMF.
The Indian economy is projected to grow at a healthy pace of 6.6 per cent this year, while the Chinese economy has remained resilient despite the increased tariffs, with robust growth in the first half of this year driven by fiscal intervention and strong exports, he noted.
Countries in the Association of Southeast Asian Nations (ASEAN) are projected to grow at 4.3 per cent this year and the next, still supported by export strength and some countries by policy support, he said.
Average growth in Asia has decreased relative to the pre-pandemic period. And there are a number of factors that are a concern from a growth perspective: aging populations, weaker productivity, economic scars from the pandemic, rising youth unemployment, long-term dissatisfaction and the lack of jobs and opportunities. These are weighing on sentiment, but also prospects, Helbling added.
Meanwhile, the IMF recently said it is satisfied with Bangladesh’s performance in controlling inflation and maintaining foreign currency reserves, but is unconvinced regarding the country’s tax-to-gross domestic product (GDP) ratio due to a shortfall in revenue collection targets.
The observations came following the first round of meetings in Dhaka as part of the IMF’s 5th Review Mission to the country.
The mission, led by Chris Papageorgiou, will remain in the country till November 13 for a comprehensive review and talks with the Bangladesh Bank and ministries.
Fibre2Fashion News Desk (DS)