Asia-Pacific economy to grow at 4.5 pc in 2024: IMF

SINGAPORE: The growth in the Asia-Pacific region will moderate to 4.5% this year from the outperformed 5% in 2023, the International Monetary Fund (IMF) said in its 'April 2024 Regional Economic Outlook: Asia and Pacific' launched in Singapore on Tuesday.

The report noted that the Asia-Pacific is projected to remain the most dynamic region worldwide, contributing approximately 60% of global growth in 2024.

The IMF highlighted that the region boasts a variety of growth drivers, ranging from robust domestic consumption in most ASEAN countries to a significant increase in tourism in the Pacific Island countries.

The IMF stated that near-term risks are now generally balanced. The retreat of inflation and the prospect of earlier monetary easing have heightened the possibility of a soft landing.

The IMF added that stronger-than-anticipated growth in Europe and the United States will stimulate growth for Asia’s exporters. However, increased geo-economic fragmentation and geopolitical tensions continue to present significant downside risks to the region’s medium-term growth.

The IMF advised that central banks should ensure a smooth return of inflation to target levels. Policymakers should avoid basing decisions too heavily on anticipated interest rate moves by the Federal Reserve.

By RSS/Xinhua