Asia to grow at 4.6% in 2023; India & China to lead the expansion: IMF

The International Monetary Fund raised Asia's growth forecast to 4.6% for the year 2023 from 3.8% increase in 2022. The forecast for 2023 is a 0.3% raise from its October prediction of 4.3%.

The increase in forecast comes on the back of China's reopening. "The main development has been the reopening of China, where surging consumption is boosting growth across the region despite weaker demand from the rest of the world," said IMF.

In its Regional economic outlook-Asia and Pacific report, IMF said that Asia would contribute around 70% of global growth. "Asia and Pacific will be the most dynamic of the world's major regions in 2023, predominantly driven by the buoyant outlook for China and India," the IMF report said.

IMF has predicted an expansion of 5.9% for India and 5.2% for China. However, IMF has warned of risks from high inflation and global market volatility driven by banking-sector crises in the U.S. and Europe. The agency has also decreased Asia's growth forecast by 0.2% to 4.4% for next year.