IMF forecast suggests slowdown to 4.5 % for Asia Pacific in 2024

IMF Forecast: International Monetary Fund (IMF) has released its latest projections for economic growth, spotlighting a trend of moderation in Asia Pacific region. Forecasts suggest a slowdown to 4.5 per cent this year, followed by a slight dip to 4.3 per cent in 2025. 

However, IMF emphasises that this deceleration signifies more of a "soft landing" scenario rar than a cause for concern. Factors such as swift disinflation and robust growth in key countries are highlighted as stabilizing influences. This nuanced perspective suggests that while expansion might be losing momentum, region's economic fundamentals remain robust, paving way for sustained stability and future growth.

In a separate announcement, IMF has revised its growth outlook for India, forecasting a 6.8 per cent expansion in GDP for current fiscal year 2024/25, with a furr 6.5 per cent growth anticipated for following year.

This represents a 0.3 percentage point upward justment from previous projections in January. IMF's World Economic Outlook for April 2024, unveiled at start of World Bank IMF Spring Meetings, underscores global economy's resilience, citing stey growth and a return to targeted inflation rates. 

Despite challenges such as supply disruptions post-pandemic, Ukraine conflict, and subsequent global energy and food crises, as well as monetary tightening measures, global economy is expected to rebound. Global output growth is projected to reach 3.2 per cent in 2024 and 2025, following a low of 2.3 per cent at close of 2022.

With Reuters Inputs