According to a recent report by the International Monetary Fund (IMF), India and China are expected to contribute to half of global growth in the year 2023. The report suggests that the two Asian giants are on track to drive the global economic recovery, following the impact of the COVID-19 pandemic.
The IMF’s World Economic Outlook report highlights that India’s economy is set to grow by 9.5% in 2023, while China’s is expected to grow by 5.8%. This is a significant increase from the estimated global growth rate of 4.4% for the same year. The report also predicts that the world economy is set to grow by 3.5% in 2022.
The projections for India and China are driven by a combination of factors, including their large populations, increasing levels of urbanization, and growing middle classes. Additionally, both countries have made significant investments in infrastructure, education, and technology, which are expected to continue to drive economic growth.
India has already made strides in its recovery from the pandemic. The country’s vaccination campaign is one of the largest in the world, with over 400 million doses administered to date. The government has also launched various economic stimulus measures to boost demand and support businesses.
China, too, has shown resilience in the face of the pandemic. The country’s economy grew by 18.3% in the first quarter of 2021, which is the strongest rate of growth since record-keeping began in 1992. China’s export sector has been a key driver of growth, as demand for its goods has surged worldwide.
The IMF report underscores the importance of these two economies in shaping the global economic outlook. It also highlights the need for international cooperation and coordination to ensure a sustainable and equitable recovery for all countries.
However, the report also cautions that there are risks to the global economic recovery, including the potential for new waves of COVID-19 infections, geopolitical tensions, and climate change. To mitigate these risks, the IMF calls for continued support for vaccination campaigns, targeted fiscal policies, and investments in green technologies.
In conclusion, the IMF’s report on India and China’s contribution to global growth in 2023 underscores the potential of these two economies to drive the global economic recovery. However, it also highlights the need for continued efforts to ensure a sustainable and equitable recovery for all countries
