IMF: India and China to contribute more than half of global growth

February 21, 2023

The International Monetary Fund recently said that India and China will contribute more than 50% of the global growth in 2023. Another 25% will be contributed by other Asian countries. This is happening because the supply chains faded during the pandemic and the service sectors boomed during the same period. The supply chains will take time to recover. Things may change when they recover.

What is the IMF saying?

The Asian countries are back to their pre-pandemic growth. Especially countries like Cambodia, Malaysia, Vietnam, Thailand, and Indonesia are in full operation
The inflation will reach the targets set by the central banks of respective countries by the end of 2023. In the recent MPC, RBI increased the interest rate and repo rate. RBI has increased the repo rate by 250 points in 2022 alone. Still, the inflation is 6.25%, which is higher than the target inflation of 6% set by RBI.
Central banks need to stay alert. As the Chinese are reopening their economy, inflation may increase
Food and oil processes are coming to stable conditions