The reopening of China, which the head of the IMF claims has opened the way for a quicker-than-anticipated recovery in activity, is certain to enhance the outlook for the global economy. Beijing will be the focus of attention in regards to requests to relax its policies as a creditor to emerging markets and in relation to long-desired debt restructurings.
The Asia-Pacific region is projected to grow at a rate of 4.7% in 2023, up from a 2022 growth rate of 3.8%. The decreasing disruptions to the supply chain and the expansion of the service industry bode well for India.
Source: Business Today
The Reserve Bank of India will be closely watching the potential inflation spike caused by increased demand following the relaxation of Covid-related restrictions in China. Inflation in January was above the RBIu2019s upper tolerance limit of 6 per cent. A further interest rate hike is expected.
A harsh reality check was also provided by the IMF director. Several economies and populations are still in trouble three years after the shocks. In 79 different nations, 34.9 crore people experience severe food insecurity. India may have become one of the major economies with the fastest growth rates in the world, but given the reality on the ground, it is difficult to understand how to interpret the growth figures. The incessant trumpeting contrasts with the economic and employment hardship that very significant segments of the populace are facing. There is still a lot of work to be done.
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