IMF cuts Asian growth forecasts

Warns of geo-economic fragmentation

The International Monetary Foundation cut its growth forecasts for the Asia and Pacific region on Friday (October 28) as it said the region was burdened by a “sharp and uncharacteristic slowdown” of China’s economy, global financial tightening and the war in Ukraine.

The growth forecasts were dropped to 4% for 2022 and 4.3% for 2023, a 0.9 and 0.8 point drop respectively from April's figures. The region has had an average of 5.5% growth over the last two decades. "Asia's strong economic rebound early this year is losing momentum, with a weaker-than-expected second quarter," explained Kirshna Srinivasan, director of the IMF's Asia and Pacific department. The IMF outlined three "formidable headwinds" including slowing Chinese growth, that led to the revision of the figures. The group forecasted growth for China to be 3.2% in 2022, the second-lowe...