Image : Shutterstock . com .
AN
EYE ON ASIA
The Asia-Pacific region has been a key driver of global growth despite “ We highlight global headwinds , political turmoil economic growth and conflicts in Ukraine and the Middle rates and trends in
East . The IMF ( International Monetary Asian and Asia-Pacific
Fund ) believes that Asian policymakers markets , with selected need to address longer term structural forecasts for 2025 / 6 .” issues , if they wish to preserve Asia ’ s role as an engine of global growth .
“ Recently , some Asian economies have shifted more into services rather than manufacturing . This trend is likely to continue as many Asian economies have reached income levels where the demand for manufactured goods typically declines and the demand for services tend to increase . The shift into services has been good for growth as modern services are often more productive than manufacturing . Moreover , digital technology is making some services , such as business and finance , more tradable in global markets ,” commented the IMF in November 2024 .
“ The emerging global market of services hold large growth opportunities but achieving them will require reforms . Education and training , for example , will need to equip workers with the skills to provide modern services and Asia should open its services sector to trade and investment . They remain relatively closed , in contrast to manufacturing ,” it continued .
Asia remains the world ’ s engine of growth . It generates 60 per cent of global economic growth , far more than its share in global GDP of about 40 per cent .
Image : Shutterstock . com .
Asian policymakers need to address longer term structural issues , if they wish to preserve Asia ’ s role as an engine of global growth
IMF Asia-Pacific regional outlook
According to the IMF ’ s Asia-Pacific regional economic outlook ( briefed to journalists on 1 November 2024 ) in the first half of 2024 , most Asian economies exceeded the IMF economic growth forecast made at the time of the April 2024 regional economic outlook .
“ The entire region benefited from strong global demand for Asian exports . For domestic demand , the picture was more nuanced . Some advanced economies outside Japan experienced a soft patch in household consumption , which may reflect the impact of early monetary tightening ,” said Krishna Srinivasan , Director , IMF ’ s Asia and Pacific Department .
“ On inflation , the news is also positive . Asia has brought inflation down to low and stable rates faster than other regions . In emerging
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Kuala Lumpur , Malaysia .