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BUSINESS EYE APRIL 26, 2024 | The Indian Eye 36

How Asia, led by India, will account for

60 per cent of the global growth in 2025

IMF recommends the Asian central banks to focus on domestic inflation and avoid

overreliance on anticipated moves by the Federal Reserve

OUR BUREAU
New Delhi/Mumbai

sia, led by India, is poised to make a signif-
icant contribution to global growth, with
Aprojections indicating that the region will
account for about 60 per cent of global growth, as
highlighted by the International Monetary Fund
(IMF) at a press briefing on the Regional Econom-
ic Outlook for Asia and Pacific.
“We now project the region to grow by 4.5 per
cent in 2024--an upward revision of 0.3 percentage
points relative to October. With this, Asia would
contribute about 60 percent of global growth. The
region is projected to grow by 4.3 per cent in 2025,”
said Krishna Srinivasan, Asia and Pacific Depart-
ment Director, IMF.
He further added that “In China and India, we
expect investment to contribute disproportionate-
ly to growth--much of it public, especially in India”.
The IMF also recommends the Asian central
banks to focus on domestic inflation and avoid side China and India, robust private consumption The IMF’s Regional Economic Outlook is
overreliance on anticipated moves by the Federal will remain the main growth engine” said Krishna scheduled to be launched on April 30 in Singa-
pore, where further discussions on these economic
Srinivasan, Asia and Pacific Department Director,
Reserve. According to IMF, the US interest rates IMF. trends and policies will take place.
have a strong and immediate impact on Asian fi-
nancial conditions and exchange rates.
In terms of fiscal policy, the IMF recommends Indians are spending more on health and
Asian governments, including India, focus on con-
solidation to curb rising public debt levels and re- wellness: Razorpay report
build fiscal buffers, ensuring sustainable develop-
ment and resilience.
Highlighting the critical role of China’s econ- ndians have increased expenditure on dieti- al guidance to achieve their fitness goals.
omy in the region, the IMF warns against a pro- cians and health coaching in the year 2023, The data for 2023 reveals that while focusing
tracted slowdown in China, noting potential ad- Iaccording to a report by payments solution on health, individuals are also willing to invest
verse effects on the region. While policy support in provider Razorpay. financially in their well-being, indicating a ho-
China could benefit Asia, measures that reinforce The report highlights that there has been listic approach towards leading a balanced and
deflationary pressures may provoke frictions. a 125% rise in spending on dieticians in FY’24, fulfilling life.
The IMF acknowledges the unexpected surge reflecting a growing awareness and emphasis The report’s insights indicate the evolving
in growth experienced by Asia in the second half on maintaining a balanced diet and nutrition mindset of Indians towards health and wellness,
of 2023, with Malaysia, the Philippines, Vietnam, among Indians. Additionally, transactions relat- underscoring a shift towards proactive measures
and India recording substantial positive growth ed to health coaching have also surged by 45%, to maintain a healthy lifestyle in today’s fast-
surprises. The region’s growth reached 5.0% in indicating a clear interest in seeking profession- paced world.
2023, surpassing the previous year’s growth, and is al guidance for fitness and overall wellness. The homegrown fintech company analysed
projected to grow by 4.5% in 2024. The data further underscores a noticeable over a billion transactions processed on its plat-
According to the IMF, factors driving growth trend towards preventive healthcare, with sales form during the past financial year, to know the
vary by country, with investment expected to play of health products witnessing a substantial 39% spending habits of Indians.
a significant role in China and India, while ro- increase in FY’24. This surge in spending on The National Health Policy, 2017 also advo-
bust private consumption remains a key driver in health-related services and products indicates cates for the attainment of the highest possible
Emerging Asia. The IMF warns of inflationary the growing recognition among Indians that level of health and well-being for all at all ages.
pressures across Asia and emphasizes the impor- true prosperity encompasses good health. Also, the Fifteenth Finance Commission, in its
tance of differentiated policy approaches to ad- The report also highlights that Indians report, had recommended that public health ex-
dress them. are increasingly prioritizing their health and penditure of Union and States together should
“In China and India, we expect investment to well-being, recognizing the importance of be increased in a progressive manner to reach
contribute disproportionately to growth--much of adopting healthy habits and seeking profession- 2.5 per cent of GDP by 2025.
it public, especially in India. In Emerging Asia out-

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