The IMF report pointed out that although it is optimistic about the economy in the Asia-Pacific region, it also warns of downside risks. These risks include tight short-term monetary and fiscal policies of various countries, the need to deal with the spillover effects of the United States’ more-than-expected tightening monetary policy in the future, and supply chain disruptions related to geo-economic fragmentation.
Growth in the Asia-Pacific region will slow to 3.9% over the next five years, according to the IMF, the lowest medium-term forecast in the region's recent history.
The report also pointed out that various countries have implemented tightening monetary policies, the war between Russia and Ukraine continues to drag down economic activities, coupled with factors such as high public debt and increased interest costs in some countries, have brought more uncertainties to the already complex global economic situation.
