IMF predicts India and China to contribute over half of global growth this year

New Delhi, Feb 21 (KNN) This year India and China are expected to contribute more than half of global growth, said the International Monetary Fund (IMF) on Tuesday.

It has forecasted that the rest of Asia will contribute an additional quarter.

With China halting its covid zero policy economists have turned bullish on China along with its reopening in the second half of 2022. 

The Indian economy has also shown positive signs, with its growth amongst the highest in the world over the last two years.

The war in Ukraine and the rise of central bank rates to fight inflation were highlighted as factors constraining economic activity. 

However, the re-opening of China and the loosening of pandemic-related lockdown restrictions may help to boost global growth.

Asia's emerging and developing economies are hitting their stride as pandemic supply chain disruptions fade and the service sector booms. 

“Cambodia, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam are all back to their robust pre-pandemic growth," the organisation said.  (KNN Bureau)