IMF Predicts 3% Global Growth Amid Asian Economic Uncertainty

The global economy is expected to grow 3% this year, according to the International Monetary Fund. However, growth rates vary across countries and regions.

In Asia-Pacific, attention is centered on monetary policy, currency movements, technology demand, and major stock market performance. Japan and China, two of the region's biggest economies, are sending different signals.

The Bank of Japan expects underlying inflation to gradually move towards its 2% target, with future policy decisions depending on developments in economic activity, prices, and financial conditions.

China's economy expanded 4.3% year-on-year in the second quarter, slowing from 5% in the first quarter, according to official figures. Growth for the first half of the year was estimated at 4.7%. Developments in China matter beyond its borders, particularly for economies closely tied to Chinese trade and demand for commodities.

The IMF has highlighted the impact of artificial intelligence-related demand on global supply chains. The Bank of Japan also pointed to stronger demand in the sector as a support for domestic economic activity.