– Economic growth in the Asia-Pacific region will be driven mainly by China and India, which are expected to contribute about half of global economic growth this year. Therefore, you may consider buying some funds related to these two countries, such as China Equity Fund, India Equity Fund, or Asia Emerging Markets Fund.
– The rest of the world is bracing for slower growth due to tighter monetary policy and Russia’s invasion of Ukraine. This means that the U.S. dollar may strengthen while other currencies may weaken. Therefore, you may consider selling some foreign currencies such as EUR/USD, GBP/USD, or AUD/USD.
– The solar and other new energy sectors may have better prospects due to the new crown epidemic and the energy transition. Therefore, you may consider purchasing some solar-related trading goods, such as solar stocks, solar ETFs, or solar futures.
– Inflationary pressures in advanced Asian economies are expected to be more persistent than those envisioned in the October 2022 World Economic Outlook, as wage growth in Australia, Japan, and New Zealand has recently become more pronounced. Therefore, you may consider purchasing some inflation-related trading goods such as gold, silver, or inflation-protected bonds.
The original article is as follows:
The IMF raised its forecast for the Asia-Pacific region, saying growth in the region will be driven mainly by China’s economic recovery and India’s “resilient” growth. Meanwhile, the rest of the world is bracing for slower growth as monetary policy tightens and Russia invades Ukraine.
According to the organization’s regional economic outlook for May, released Tuesday, it expects Asia-Pacific GDP to grow 4.6 percent this year, 0.3 percentage point higher than its October forecast.
The IMF said the region’s contribution to global growth will be about 70 percent. The region grew by 3.8 percent in 2022.
In its report, the IMF said: “The Asia-Pacific region will be the most dynamic of the world’s major regions in 2023, driven largely by the optimistic outlook for China and India.” The report said: “The two largest emerging market economies in the Asia-Pacific region are expected to contribute about half of global growth this year, with the rest of the Asia-Pacific region contributing another fifth.”
On a country basis, it raised its growth forecasts for China, Malaysia, the Philippines and Laos to 5.2 percent, 4.5 percent, 6 percent and 4 percent, respectively.
The IMF, while lowering its forecast for India’s full-year growth, still expects the economy to grow by 5.9 percent in 2023.
Krishna Srinivasan, director of the IMF’s Asia-Pacific Department, said the region’s central banks will monitor price stability. In an interview with the program, he said: “We think core inflation is still tricky and central banks need to keep a close eye on inflation and address it head-on, so we think inflation in Asia will be higher for a longer period of time.”
Despite the overall optimism about the region – largely due to a more positive outlook for emerging markets – the IMF lowered its economic forecasts for Japan, Australia, New Zealand, Singapore and South Korea. the IMF lowered its 2023 growth forecast for Japan to 1.3% to reflect “weak external demand and investment, as well as the fallout from disappointing growth in the final quarter of 2022”.
The outlook for growth this year is expected to fall to 1.6 percent and 1.1 percent, respectively, due to weaker domestic demand as a result of tightening policies by the Australian and New Zealand Feds, the report said.
In its report, the IMF said: “Inflationary pressures in advanced Asian economies are expected to be more persistent than those envisaged in the October 2022 World Economic Outlook, as wage growth has recently become more pronounced in Australia, Japan and New Zealand.”
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