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IMF Lowers Forecast for Asian Economic Growth to 4.9% in 2022

The International Monetary Fund (IMF) forecasts Asian economies will grow by 4.9% in 2022, down 0.5% from its January forecast. It said Asian economies are likely to face a slowdown and rising inflation. This includes the slowdown in China’s economy, which is also a factor facing Asian economies with uncertainty.

In addition, the IMF forecasts that inflation in Asia will reach 3.4% in 2022, higher than its January forecast.

Anne-Marie Gould-Wolf, the IMF’s acting director for Asia-Pacific affairs, said that while Asia’s trade and finances were affected to a limited extent by the Russia-Ukraine war, the IMF’s Asia-Pacific affairs continued to grow. However, regional economies could be affected by the crisis, including the rise in commodity prices and the slowdown in the European economy, which is Asia’s main trading partner.

In addition, Ms. Gould-Wolf said that the U.S. Federal Reserve (Fed) is likely to raise interest rates further. This will pose challenges for central banks in Asia, as Asian dollar-denominated debt is enormous.

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