Asia Minute: IMF Says Asia Will Continue to Pace World Economic Growth
The global economy should continue on a growth path for the next several years, but at a slower pace. That’s the word from the International Monetary Fund, which has revised its world economic outlook. But when it comes to regions of the world, Asia is still generally a strong performer. HPR’s Bill Dorman has details in today’s Asia Minute.
The International Monetary Fund expects global growth of 3.2% this year and three and a half percent next year. That’s a slight downgrade of expectations from earlier this year, but the organization predicts growth in China will pick up a little bit. Not that much—an improvement of 2/10 of 1% for this year and next—but that would mean growth of 6.5% this year in China and better than 6% next year.
It’s a different story for the region’s second largest economy. The IMF says Japan will grow by only half a percentage point this year…and will dip into a slight recession next year if it sticks with its current plan of raising taxes.
India has the strongest outlook in Asia—with expectations of 7.5% growth this year and next. Southeast Asia ranges from 3% growth in Thailand on the low end to expansion of more than 6% in Vietnam. Malaysia, Indonesia, and the Philippines will have growth rates somewhere in between.
The IMF sees modest growth for Australia— 2.5% this year…about the same as the United States.
But the organization sees stronger growth for Australia next year—in part because of a more competitive currency…two factors that could be welcome news for a growing portion of Hawai‘i’s tourism sector.