60% of global growth in 2024 will come from Asia, according to an IMF official

Tokyo, May 14, Japan: According to IMF Deputy Managing Director Okamura, Asia continues to be the key driver of economic development and is expected to provide 60% of global growth this year.

The international economy has shown resilience to further shocks after the epidemic, and according to the IMF’s most recent World Economic Outlook, global growth will reach 3.1% this year.

Asia is also ahead of the curve in controlling inflation. In his opening comments at the Thirteenth IMF-Japan High-Level Tax Conference for Asian Nations, the IMF official said that the majority of Asian nations are anticipated to meet their central bank objectives by 2024.

However, difficulties still exist.

The official said that governments now have fewer resources due to high debt levels and growing debt payment expenses as a result of providing exceptional assistance in response to the epidemic and Russia’s conflict in Ukraine.

The need for public expenditure is rising concurrently, particularly in Asia, where there is a growing population aging due to climate change.

“And there will be less tax money to pay for it all due to the worst medium-term expectations for global growth in decades. The IMF Deputy Managing Director said, “In this challenging environment for government budgets, mobilizing domestic revenues is essential to meet growing spending demands and build resilience against future shocks.”

He pointed out that developing countries and emerging markets may take advantage of their tax potential to increase their tax-to-GDP ratios by an average of up to 9 percentage points.

In the meantime, the most recent World Economic Outlook from the International Monetary Fund projects that India will continue to expand at the quickest rate among major countries in 2024. The IMF increased India’s growth estimates for 2024 from 6.5% to 6.8% in its most recent forecast. The IMF has maintained India’s 6.5% growth rate forecast for 2025.

The IMF based its growth predictions on an increasing working-age population and strong and stable domestic demand.

Demographic dividend nations may contribute to the expansion of the global labor force, whereby, according to the IMF’s most recent World Economic Outlook report, roughly two out of every three new workers will come from sub-Saharan Africa and India over the medium term.

India’s official statistics show that the nation expanded at a staggering 8.4% during the October–December quarter of the fiscal year 2023–24, maintaining its position as the fastest-growing major economy.

The GDP of India expanded by 7.8% and 7.6% in the April–June and July–September quarters that preceded it. India’s GDP expanded by 7.2% in 2022–2023 and 8.7% in 2021–2022, in that order.

According to the research, China’s GDP is predicted to expand by 4.6% this year and by 4.1% in 2025.

In general, the IMF projected 3.2% global growth in 2024 and 2025, respectively. It said that despite inflation returning to its goal, growth in the global economy is still impressively stable.

The IMF had said that despite several dire forecasts, the globe escaped a recession, the banking sector proved to be mostly robust, and significant developing market economies did not experience abrupt pauses.