The International Monetary Fund says Asia’s economies are still set to underpin world economic growth, despite being dragged by a slowdown in China. IMF in its Regional Economic Outlook said, the Asia Pacific region is expected to grow at a strong 5.3 per cent this year, accounting for nearly two-thirds of global growth.
The IMF is forecasting India will remain the world’s fastest-growing large economy, set to grow 7.5 per cent this year and next, as it benefits from lower oil prices. Last year, India’s economy grew 7.3 per cent.
China, which is re-balancing its economy away from a dependence on manufacturing and towards consumption, is expected to see its economic growth slow to 6.5 per cent this year and 6.2 per cent in 2017, from 6.9 per cent last year.
It expects Vietnam will be among the region’s fastest growing economies, while domestic demand will remain resilient in the Philippines and Malaysia.