PHOTO: International Monetary Fund

Against a somber backdrop of a challenging year for the world economy, Asia and the Pacific remains a dynamic region.

Asia's domestic demand has remained strong despite monetary tightening, while external appetite for technology, products and other exports is weakening. Growth in Asia and the Pacific is expected to increase to 4.6 percent this year, up from 3.8 percent in 2022. The biggest driver of Asia's upward growth revision in the 2023 World Economic Outlook on Asia and Pacific is China, while other emerging economies in the region are on track to enjoy solid growth, though in some cases at least at slightly lower rates than seen last year.

It means that Asia and the Pacific is driving global growth. The countries in the region are combined to account for about 70 percent of global growth in 2023. This is a much larger share than we've seen in the past few years. And just two countries, India and China, account for about 50 percent of global growth.

China's reopening of the economy will provide fresh momentum for the region's growth. The Chinese economy is expected to expand by 5.2 percent in 2023, and data from the first quarter have confirmed our forecast for a dynamic start of 2023, with a strong rebound in consumption.

Looking forward, the Purchasing Managers' Index for manufacturing is less than expected, but notwithstanding that, the dynamism of China's economy is pretty strong. So the growth prospects provide a real momentum for near term growth in the region.

—Krishna Srinivasan, Director of the Asia and Pacific Department, IMF