Addressing a press conference on the Regional Economic Outlook for Asia and Pacific in Washington D. C on April 18, Srinivasan said Vietnam’s economic growth is likely to expand by about 6.5% based on numerous potentials, significant foreign direct investment, and ongoing efforts to improve the business environment and infrastructure.
According to the expert, growth surprised on the upside in the second half of 2023, as robust domestic demand fueled activity especially in emerging Asian economies. Malaysia, the Philippines, Vietnam, and, most notably, India recorded sizeable positive growth surprises.
He stated that growth for the region reached 5.0% in 2023 - much stronger than the growth of 3.9% in 2022 - and is 0.4 percentage points higher than what IMF had projected in the October 2023 Regional Economic Outlook.
The fund projects the region to grow by 4.5% in 2024 - an upward revision of 0.3 percentage points relative to October, saying that with this, Asia will contribute about 60% of global growth.
Srinivasan said that promoting growth depends on each country individually. In China and India, IMF expects investment to contribute disproportionately to growth. Meanwhile, in emerging Asia outside China and India, robust private consumption will remain the main growth engine.
He also mentioned the monetary policy challenge, recommending that governments should focus on consolidation to curb the rise in public debt and rebuild fiscal buffers.
