Asia and the Pacific is a relative bright spot amid the more somber context of the global economy’s rocky recovery.
As the Chart of the Week shows, the region will contribute about 70 percent of global growth this year—a much greater share than in recent years.
The impressive growth of Asia’s economy is being fueled by China’s reopening. The country has been instrumental in driving growth across the region as surging consumption lifts demand for goods and services beyond its borders. However, while the region continues to be a bright spot in an otherwise sluggish global economy, it still has its share of challenges.
In the short term, policymakers in Asia will need to maintain tight monetary and fiscal policies to combat inflation and stabilize public debt. At the same time, global shocks like supply chain disruption and unexpectedly tight US monetary policy may negatively…
