The International Monetary Fund (IMF) has predicted that India and China will be the major contributors to world economic growth in 2023, according to recent reports. It expects both the Asian countries to partake in more than half of the global economic growth this year, with the rest of the continent contributing an additional quarter.
With China stopping its Covid Zero policy and reopening in the second half of 2022, economists are now bullish regarding the country. Positive trends have also been seen in the Indian economy, which over the past two years has experienced some of the greatest growth rates worldwide.
The Ukrainian conflict and the increase in central bank interest rates to combat inflation were cited as factors limiting economic growth. But the reopening of China and the relaxation of lockdown regulations associated to the pandemic may help.
Price pressures have remained strong, especially in energy commodities and general groceries, due to the ongoing conflict in Ukraine, logistical difficulties brought on by the epidemic, and other geopolitical factors.
As the effects of pandemic supply chain disruptions fade and the service sector expands, Asia’s emerging and developing economies are starting to take off. According to the organisation, “Cambodia, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam have all returned to their robust pre-pandemic growth.”
Due to the ongoing crisis in Ukraine, logistical challenges brought on by the virus, and other geopolitical issues, price pressures have remained intense, particularly in energy commodities and basic groceries.
Asia’s young and developing economies are beginning to take off as the impacts of pandemic supply chain disruptions fade and the service sector grows. “Cambodia, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam are all back to their robust pre-pandemic growth,” the organisation claims.