The International Monetary Fund (IMF) produces detailed analyses of the world, Asian, and Indian economies through flagship publications such as the World Economic Outlook, the Regional Economic Outlook for Asia and the Pacific, and India’s Article IV report. These publications contain detailed analyses of the issues that affect the world and regional economies, risks to the growth trajectory, and other relevant topics that are summarized across major economic regions. The widely followed outlook provided by the survey forms the backbone of income growth, fiscal and industrial projections worldwide.
In this context, NSE and the IMF organized a Seminar on Asia’s Regional Economic Outlook on Wednesday, November 2nd, 2022. This is the sixth event in the on-going collaboration between NSE and IMF. Dr. Shanaka Jayanath Peiris, Division Chief, Regional Studies Division, Asia Pacific Department, International Monetary Fund presented IMF’s views on the current risks that the Asian economy face and the implications for India. He said, “tightening financial conditions, reduced European demand for Asian exports following the war in Ukraine and uncharacteristic slowdown in China, are the major headwinds to Asian economic growth. Currencies in the region have depreciated sharply, while public debt ratios have increased. Going forward, countries in Asia Pacific region should stay the course on tightening monetary policy. Fiscal policy also has a role to play in complementing monetary policy in stabilizing debt, while providing temporary, targeted and budget-neutral support to the vulnerable”.
The presentation was then discussed by a high-powered panel including Dr. Rupa Rege Nitsure, Chief Economist, L&T Financial Services, Dr. Shubhada Rao, Founder QuantEco Research, Mr. D.K. Joshi, Chief Economist S&P Crisil and moderated by Dr. Tirthankar Patnaik, Chief Economist, National Stock Exchange. The panel members elaborated on domestic inflationary pressure, depreciating INR and India’s position against the external vulnerabilities.