On October 24th, during a press conference at the International Monetary Fund (IMF) and World Bank’s annual meeting in Washington, D.C., Krishna Srinivasan, Director of the Asia and Pacific Department at the IMF, emphasized the negative impact of trade fragmentation on global economic growth. He noted that Asian countries, being closely integrated into global supply chains, would face greater losses compared to others.
Srinivasan pointed out that in recent years, many countries have implemented trade restrictions. While individual countries may see short-term benefits from these trade divisions, he insisted that “no one will benefit” in the long run, as all economies will bear the costs of a slowing global economy.
When discussing the current state of the Asian economy, Srinivasan remarked that growth in the region has exceeded expectations in the first half of this year. The latest World Economic Outlook report reflects an upward revision of Asia’s growth projections, forecasting a growth rate of 4.6% for 2024 and 4.4% for 2025. He highlighted that Asia remains a vital engine for global economic growth, contributing as much as 60% to the overall growth rate.
On the issue of inflation, Srinivasan noted that Asia is also outpacing other regions in bringing inflation rates down to a lower and more stable level.
Regarding the Chinese economy, he acknowledged the government’s recent rollout of a series of economic stimulus measures aimed at revitalizing the property market, describing it as positive news for economic growth, with tangible effects expected by 2025.
The IMF and World Bank’s annual meeting took place from October 21 to 26 in Washington, D.C.
