Supply shock-induced slowdown in China could shave Asia’s growth by 1.3%: IMF 

A SUPPLY shock-induced slowdown in China could shave Asia’s growth by about 1.3 per cent in the medium term, said a senior official from the International Monetary Fund (IMF).

Growth in the world’s second-largest economy is projected to moderate to 3.2 per cent in 2022, from 8.1 per cent last year, and remain below 5 per cent for the next five years. This is expected to generate spillovers around the world, especially in Asia where growth is expected to moderate to 4 per cent in 2022 before rising to 4.3 per cent in 2023.

“Intra-regional trade has grown significantly in the past decade to more than half of total Asian trade,” said Krishna Srinivasan, director of the IMF’s Asia-Pacific department.