The International Monetary Fund ( IMF  ) said that China and India will together account for about half of the total growth of the global economy this year, which confirms the growing role of Asia in the global economy.
The fund currently expects the Asia-Pacific region to grow at a rate of 4.6% during the current year, an increase of 0.3 percentage points from last October’s expectations, after growing at a rate of 3.8% during the past year, most of it after the lifting of Corona restrictions in China. According to the Fund’s estimates, the Asia-Pacific region will contribute more than 70% of global growth this year, according to Bloomberg News.
Krishna Srinivasan, director of the IMF’s Asia and Pacific department, said China’s economic recovery had revived activity across the region.
He added that the strongest impact on regional growth was coming from Chinese demand for investment goods, but this time “we expect the strongest impact to come from growing Chinese demand for consumer goods.”
At the same time, Gita Gopinath, First Vice President of the International Monetary Fund, said earlier in the day that the Chinese economy will grow at a rate of 5.2%, which is sharply lower than the growth rates before the emerging Corona virus pandemic, “We no longer have a China that is growing at very high rates … “So far there are not very big growth drivers for the global economy as a whole… If we don’t increase productivity, we will continue to suffer from low growth.”