China, India to contribute half of global economic growth in 2023: Think Tank

India and China will contribute to half of the worlds growth this year Chinas top think tank said on Tuesday highlighting that Asia will remain a crucial growth engine with an estimated 45 per cent GDP expansion making it a standout performer amidst the global economic slowdownThe Boao Forum for Asia BFA Beijings prominent official think tank said in a report that Asian economies are accelerating the pace of overall economic recovery in 2023 making them standout performers given the global economic slowdownThe report was released as the think tank on Tuesday began its fourday annual session at the Boao village in the Hainan province of ChinaThe report titled Asian Economic Outlook and Integration Progress said that Asias weighted real Gross Domestic Product GDP growth rate in 2023 is estimated to be 45 per cent an increase from 42 per cent in 2022 making it a standout performer in view of the global economic slowdownChina and India would contribute to half of the worlds growth this year the report said citing data from the Washingtonbased International Monetary Fund IMFAs a major engine of the world economy Asia economies are accelerating the pace of overall economic recovery in 2023 IMF analysis indicates that only China and India would contribute half of the worlds growth this year with every 1 per cent increase in Chinas economic growth leading to approximately a 03 per cent increase in output for the rest of Asia Moreover other regions of Asia may also contribute a quarter of the global growth the report saidAccording to IMF projections India is expected to grow at 68 per cent in 2023 followed by China with 52 per centIn her speech at the China Development Forum on March 26 IMF Managing Director Kristalina Georgieva stressed that global economic growth might fall below three per cent this yearWe expect 2023 to be another challenging year with global growth slowing to below 3 per cent as scarring from the pandemic the war in Ukraine and monetary tightening weigh on economic activity Georgieva saidEven with a better outlook for 2024 global growth will remain well below its historic average of 38 per cent she addedAlso read US denies Chinese claim it drove away American destroyerThe BFA report said In 2023 in the context of a global slowdown and the risk of increasing fragmentation of globalisation Asia is expected to accelerate its pace of overall economic growth continue to advance regional production trade investment and financial integration and cohesion and seize the Asian moment for global economic governanceTo manage critical issues facing Asias development the report called for significant attention to the resilience of Asian economies reconfiguration of industrial chains climate change responses and implementation of regional trade agreementsThe report said that despite a deteriorating global labour market in 2023 the employment situation in Asia particularly in East Asia may exceed expectationsIn a separate report on sustainable development the think tank warned of profound challenges to development in Asia despite the regions buoyant economic outlookMany low and middleincome countries in Asia are encountering massive development challenges amid multiple crises such as inflation earthquakes droughts floods supply chain disruptions food and energy shortages and climate change the report said noting that such crises are compounded with external vulnerabilities such as external debt problemsThe report called for multilateral cooperation and blended financing measures to tackle the challenges and fill in development funding gaps across AsiaThe BAF Annual Conference 2023 which began on Tuesday will continue till March 31 in Boao where more than 2000 delegates from 50 countries and regions will be in attendanceAccording to the Chinese Foreign Ministry several heads of government including Chinese Premier Li Qiang Singapores Prime Minister Lee Hsien Loong Malaysias Prime Minister Datuk Seri Anwar Ibrahim Spains Prime Minister Pedro Sanchez Prime Minister of Cote dIvoire Patrick Achi will address the forumThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever