China remains major growth engine for Asia-Pacific: IMF
China will continue to make a major contribution to the economic development of the Asia-Pacific region, with the country expected to maintain steady growth and see a strong recovery in private consumption, the International Monetary Fund (IMF) said in a report.
In its May edition of the Asia-Pacific regional economic outlook, the IMF said China's economy will likely expand by 5.2 percent this year, up by 0.8 percentage points from its previous forecast in October last year.
"Data from the first quarter have confirmed our forecast for a dynamic start in 2023, with a strong rebound in consumption," said Krishna Srinivasan, director of the IMF's Asia and Pacific Department, at a media briefing held by IMF and China Finance 40 Forum.
Typically, a 1-percentage-point increase in Chinese growth leads to an increase on average of about 0.3 percentage points for the rest of Asia, he said.
Spillovers to the rest of Asia from higher consumption in China are estimated to be larger than spillovers from other growth drivers, such as investment, according to Srinivasan.
The IMF's report said the Asia-Pacific will remain a dynamic region despite challenges including weakening external demand, and the dynamism will be driven primarily by the recovery in China and resilient growth in India.
The growth in the region is projected to reach 4.6 percent and the region is expected to contribute nearly 70 percent of global growth in 2023, the IMF said, adding that China alone will contribute 34.9 percent of the global growth this year.