Asia Pacific economies headed for ‘soft landing’, says IMF

By Thomson Reuters Apr 29, 2024 | 9:23 PM

SINGAPORE (Reuters) – Rapid disinflation and resilient growth will help Asia Pacific achieve a “soft landing” even though economic expansion is expected to slow over the next two years, the International Monetary Fund (IMF) said on Tuesday.

While the region grew 5% last year, growth is expected to slow to 4.5% this year and 4.3% in 2025, the IMF said in a report.

A structural slowdown in China, including a correction in its property sector, would remain a key factor in slowing growth, it said, adding that the region remained vulnerable to commodity price shocks and trade disruptions caused by conflicts in the Middle East and Ukraine.

Growth in China, the world’s second-largest economy, was projected to slow from 5.2% in 2023, to 4.6% this year and 4.1% in 2025.

But near-term risks were “broadly balanced”, it added.

“Retreating inflation and, consequently, the prospect of earlier monetary easing have increased the likelihood of a soft landing, both in Asia and globally,” it said.

(Reporting by Kanupriya Kapoor; Editing by John Mair)