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
Asia, led by India, is poised to make a significant contribution to global growth, with projections 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 Economic 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 Department Director, IMF.
He further added that “In China and India, we expect investment to contribute disproportionately to growth–much of it public, especially in India”.
The IMF also recommends the Asian central banks to focus on domestic inflation and avoid overreliance on anticipated moves by the Federal Reserve. According to IMF, the US interest rates have a strong and immediate impact on Asian financial conditions and exchange rates.
In terms of fiscal policy, the IMF recommends Asian governments, including India, focus on consolidation to curb rising public debt levels and rebuild fiscal buffers, ensuring sustainable development and resilience.
Highlighting the critical role of China’s economy in the region, the IMF warns against a protracted slowdown in China, noting potential adverse effects on the region. While policy support in China could benefit Asia, measures that reinforce deflationary pressures may provoke frictions.
The IMF acknowledges the unexpected surge in growth experienced by Asia in the second half of 2023, with Malaysia, the Philippines, Vietnam, and India recording substantial positive growth surprises. The region’s growth reached 5.0% in 2023, surpassing the previous year’s growth, and is projected to grow by 4.5% in 2024.
According to the IMF, factors driving growth vary by country, with investment expected to play a significant role in China and India, while robust private consumption remains a key driver in Emerging Asia. The IMF warns of inflationary pressures across Asia and emphasizes the importance of differentiated policy approaches to address them.
“In China and India, we expect investment to contribute disproportionately to growth–much of it public, especially in India. In Emerging Asia outside China and India, robust private consumption will remain the main growth engine” said Krishna Srinivasan, Asia and Pacific Department Director, IMF.
The IMF’s Regional Economic Outlook is scheduled to be launched on April 30 in Singapore, where further discussions on these economic trends and policies will take place.
Indians are spending more on health and wellness: Razorpay report
Indians have increased expenditure on dieticians and health coaching in the year 2023, according to a report by payments solution provider Razorpay.
The report highlights that there has been a 125% rise in spending on dieticians in FY’24, reflecting a growing awareness and emphasis on maintaining a balanced diet and nutrition among Indians. Additionally, transactions related to health coaching have also surged by 45%, indicating a clear interest in seeking professional guidance for fitness and overall wellness.
The data further underscores a noticeable trend towards preventive healthcare, with sales of health products witnessing a substantial 39% increase in FY’24. This surge in spending on health-related services and products indicates the growing recognition among Indians that true prosperity encompasses good health.
The report also highlights that Indians are increasingly prioritizing their health and well-being, recognizing the importance of adopting healthy habits and seeking professional guidance to achieve their fitness goals.
The data for 2023 reveals that while focusing on health, individuals are also willing to invest financially in their well-being, indicating a holistic approach towards leading a balanced and fulfilling life.
The report’s insights indicate the evolving mindset of Indians towards health and wellness, underscoring a shift towards proactive measures to maintain a healthy lifestyle in today’s fast-paced world.
The homegrown fintech company analysed over a billion transactions processed on its platform during the past financial year, to know the spending habits of Indians.
The National Health Policy, 2017 also advocates for the attainment of the highest possible level of health and well-being for all at all ages. Also, the Fifteenth Finance Commission, in its report, had recommended that public health expenditure of Union and States together should be increased in a progressive manner to reach 2.5 per cent of GDP by 2025.
