India-China Global Growth In 2023 : IMF
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.
- 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
- Asia is expected to grow by 4.7% in 2023 and by 4.5% in 2024.
- In 2022, the growth rate of Asian countries was 3.8%