The International Monetary Fund warned against the economic risks in Asia
reported by Mehr News Agency The International Monetary Fund warned that continued downward pressure from China could incite “trade tensions” by hurting various sectors of the economies of neighboring countries with similar export structures, and urged Beijing to take steps to Achieving demand-based recovery for your economy.
In its regional economic outlook report for Asia, the International Monetary Fund said that a longer-than-expected slowdown in China’s economy is harmful for both the region and the global economy, and China’s policy response in This field is vital.
In its latest regional outlook, the International Monetary Fund forecasts that Asia’s economy will grow by 4.6 percent in 2024 and 4.4 percent in 2025, as monetary policies Softer around the world will boost private demand next year.
Forecasts for 2024 and 2025 both rose 0.1 percent from the IMF’s April forecast, but were lower than the 5 percent growth in 2023.
The International Monetary Fund said risks from past monetary tightening steps and geopolitical tensions could hurt global demand, raise trade costs and roil markets.
The statement said that one of the most acute risks is the escalation of retaliatory tariffs between major trading partners, which will exacerbate trade fragmentation and harm growth in the region. While low growth, high debt and escalating war topped the official agenda at the annual meetings of the International Monetary Fund and the World Bank last week, financial leaders spent much of their energy worrying about the possible effects of Donald Trump’s return to power after the US presidential election. They did it on November 5.
According to analysts, Trump has promised to impose a 10 percent tariff on imports from all countries and a 60 percent tariff on imports from China, which will hit supply chains around the world.
Krishna Srinivasan, Asia Division Manager And the International Monetary Fund’s Oceania said at a news conference on Friday that it is clear that tariffs, non-tariff barriers and domestic content provisions are not the right solutions because they distort trade investment flows and undermine the multilateral trading system. According to him, in the end, these types of actions lead to paying higher prices by consumers and investors.
The International Monetary Fund stated that recent market turmoil could foreshadow future volatility as markets base more and larger interest rate cuts by the US Federal Reserve and gradual rate hikes by the central bank. Japan gives a price.
This report states that sudden changes in expectations from these policy paths can cause a sharp adjustment of the exchange rate and its spillover to other parts of the financial market; And while volatility is not necessarily harmful in itself, it can undermine consumer confidence and investment.
The International Monetary Fund expects China’s economy to grow 4.8 percent this year, up 0.2 points from its April forecast, but slower than the 5.2 percent growth. last year The International Monetary Fund says the country’s growth is expected to slow to 4.5 percent in 2025. China has targeted growth of approximately 5% for 2024.
