Despite geopolitical volatility, the global economy is doing well- that’s the message from the World Bank and IMF. Asia continues to lead that growth, but economists are calling for further reforms to keep the momentum going.
CGTN’s Daniel Ryntjes reports.
The IMF said Asia’s regional growth will hit 5.6 percent this year and 5.5 percent the next.
Japan and the Republic of Korea’s growth rates are now predicted to be higher than expected. India’s growth has been revised downward over the short term impacts of recent financial reforms. China’s projected numbers have been boosted by recent stimulus policies which have raised the level of public debt, an issue being raised at this year’s annual meetings of the IMF and World Bank.
“That needs to come down over the medium term. We are not arguing for an immediate adjustment there. But fiscal in China, really the more important thing is the composition of spending and of tax policy. There is a lot of scope and need to use fiscal spending to rebalance the economy from investment towards consumption,” Markus Rodlauer, deputy director of IMF’s Asia and Pacific Department said.
With China alone accounts for 34% of global growth, the IMF is optimistic about the prospects for the further internationalization of China’s currency, following last year’s inclusion of the renminbi in the basket of IMF currency reserves.
The IMF says Asia is also being boosted because key export markets in Europe and the United States have also been performing well.
IMF economists are also encouraged by the prospects from increased inter-regional trade, which is helping to expand opportunities for the growing middle classes and spurring domestic consumption.
Kenneth Kang discusses the latest ratings on Asia from the IMF
For more on Asia’s economic outlook, Daniel Ryntjes spoke to Kenneth Kang, Deputy Director of the IMF’s Asia and Pacific Department.