IMF cuts Asia's economic forecasts

IMF cuts Asia's economic forecast:

IMF says 

China slowdown to drag on Asia growth 

Myriad Major challenges are being faced by global economies, especially in Asia.IMF has cut Asia's economy. It's amongst the biggest headwinds is China's rapid and broad-based economic slowdown. The international monetary fund has cut Asia's economic forecasts based on global monetary tightening and rising inflation during the war. In Ukraine, China's sharp slowdown dampened the Region's recovery prospects. Asia remains subdued compared with other regions. The IMF says most central banks are expected to continue raising interest rates to ensure inflation expectations do not become de-anchored. The IMF cut the age growth forecast to four per cent this year and 4.3 per cent next year down 0.9 and 0.8 per cent respectively. The Slowdown follows a 6.5 expansion in 2021 among the biggest headwinds is China's rapid and broad-based economic slowdown which is being blamed on strict covid-19 lockdowns and worsening property. It's bad news for Asia's economic growth apparently but how does the region compare to the rest of the globe. India and China are in a better position when it comes to inflation as compared to other parts of the world. The French figures came and France is seeing inflation at its highest level since 1985. Also, remember Winter is approaching and they badly need gas. Europe need cars and killed Russia. Supply cannot be guaranteed in that scenario. Asian economies including India and China are somewhat better positioned but the problem is that today India and China are going to face problems overall. Asian economic growth may not be as good as it was earlier so there are more challenges that they're facing. Over the last few months since February when Russia invaded Ukraine, both countries have been buying oil from Russia they're in a way hedging their bets on crude from buying oil from Russia. They are having this kind of softening of oil prices on their books but it can't go on for long and that's why their problems cannot be stopped for a long time as far as the situation currently stands they are in a better position when it comes to inflation but going forward there can be multiple problems.IMF predicted today that the economies of Asia are going to face these challenges. The key element that appears to be stifling Asia's growth at the moment. One of the big factors is Russia Ukraine war which is a monetary tightening which is happening across the world in the U.S.The interest rates are rising and because of the high-interest rates, they are in a better position. Investors are better positioned to get interest rates. In the U.S at higher security, there is a supply chain issues. They are causing problems in many countries across Asia. Asia is the manufacturing Powerhouse of the world especially China but China has this problem of going with lockdowns which has been clearly causing a lot of damage to the Chinese economy. Now, many biggest challenges are monetary tightening when Compares to overall fiscal discipline. Additionally, Ukraine's Russian war and supply chain challenges are big issues going forward since Winters are coming and nobody knows which way a Russian-Korean war is going. It seems a big challenge for Asian economies as well going forward including for India and China and this is a warning from IMF for Asia.

share your views with us and don't forget to subscribe to us and follow us.