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

IMF Forecast: The International Monetary Fund (IMF) has released its latest projections for economic growth, spotlighting a trend of moderation in the 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, the IMF emphasises that this deceleration signifies more of a "soft landing" scenario rather 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, the region's economic fundamentals remain robust, paving the way for sustained stability and future growth.

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

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

Despite challenges such as supply disruptions post-pandemic, the Ukraine conflict, and subsequent global energy and food crises, as well as monetary tightening measures, the 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 the close of 2022.

With Reuters Inputs