Asia to lead global economic growth in 2023: S&P


Asia to lead global economic growth in 2023: S&P

China, India and Southeast Asia will be the engines of global economic growth, the report said. (File)

New Delhi:

Asia’s large emerging market economies will drive global economic growth in 2023, according to S&P Global Market Intelligence.

“Fast-growing consumer markets in mainland China, India and Southeast Asia will provide important growth engines for the global economy,” said the global financial market information and analytics service provider in a report.

China’s real GDP growth is projected to recover to 5.2% in 2023 from 3.0% in 2022 as domestic demand strengthens throughout 2023.

The Asia-Pacific region is projected to account for 58% of the total increase in global GDP over the decade 2021-2031. In 2023, the report said.

“The recovery in international tourism and rising property prices indicate that the recovery will continue in 2023. The non-oil economy accounts for 75% of the UAE economy.”

On the contrary, the report says that US growth will slow in 2023 as a result of significant monetary tightening by the US Federal Reserve in 2022 and early 2023. US real GDP growth is only 0.7% in 2023 from 2.1% in 2022.

The US Central Bank’s policy rate is now in its 15-year high of 4.50-4.75% target range, especially near zero in early 2022. Point rate hike at the Jan. 31-Feb. 1 meeting to curb inflation.

Raising interest rates is usually a monetary policy instrument that helps keep demand in the economy in check, thereby helping to keep inflation down.

As for US inflation, US consumer inflation eased to 6.4% in January from 6.5% in December and 7.1% the previous month, but remains well above the 2% target.

(Except for the headline, this article is unedited by NDTV staff and published from a syndicated feed.)

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