Asia Pacific economies headed for 'soft landing', says IMF

SINGAPORE — 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 (April 30).

While the region grew five per cent last year, growth is expected to slow to 4.5 per cent this year and 4.3 per cent 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 per cent in 2023, to 4.6 per cent this year and 4.1 per cent 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.

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