Asia’s economy is recovering, but unstable

The latest forecast of the International Monetary Fund (IMF) economic assessment Asia growth this year is 4.9%, lower than the rate of 6.5% in 2021. The Asian Development Bank (ADB) forecasts GDP in the region will grow 5.2% this year and 5.3% next year. after.

“There are three major risks to the Asian economic outlook. The first is the Russia-Ukraine conflict. Second, financial conditions are tightening globally and in the region, and many central banks are predicting policy tightening as inflationary pressures intensify, slowing economic recovery.Ultimately, as we still grapple with COVID-19, new and more dangerous variants could emerge, wreaking havoc. development”, said Mr. Albert Park, Chief Economist, Asian Development Bank (ADB).

In East Asia, the world’s second largest economy, China, is forecast to grow 4.4%, according to the IMF, much lower than the 5.5% target set by the country.

Japan’s economy grew negative in the first quarter of 2022. (Photo: Reuters)

While in Japan, the country’s economy grew negative in the first quarter of 2022, consumer prices increased, the domestic currency depreciated, and inflation exceeded the set target.

“If the yen continues to depreciate like it is now, the Japanese economy will face greater challenges. The falling yen makes us reflect on the serious problems that exist in the economy. economy in Japan,” said Mr. Eiichi Shindo, Emeritus Professor, University of Tsukuba, Japan.

India is considered a bright spot when economic growth is forecasted by the IMF to increase by 8.2% this year.

In general, Asia’s economy is still considered to be in the recovery process, but it is still unstable, requiring countries to make efforts to effectively respond to major challenges such as COVID-19, inflation, disruptions, etc. supply chain.

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