Building Resilience and Boosting Growth in Asia

IMF News, February 13, 2025

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Opening Remarks by Deputy Managing Director Kenji Okamura at the 7th IMF-JICA Conference, Tokyo, Japan, February 13, 2025.
Acknowledgement of co-organizer JICA and Japanese authorities; thanks to JICA and IMF staff for organizing the event.
Emphasis on the need for agility from policymakers in a rapidly changing world where global trade and capital flows are shifting and AI is advancing quickly.

Global growth projections released in January suggest global growth will hold steady at 3.3 percent this year and next.
Divergences across countries:
- The U.S. is outperforming its advanced economy peers with stronger growth than projected.
- Growth in the Euro area will increase only modestly due to weak momentum and high energy prices.
Emerging market economies:
- Growth projections remain at 4.2 percent and 4.3 percent this year and next.
- Growth forecast for China was revised up slightly for this year and next, but growth remains slower than in past years and is now more like that of other emerging market economies.
Forecasts are subject to high uncertainty and could easily change.

Implementing reforms to lift productivity:
- No one-size-fits-all approach.
- Measures highlighted: improving the business environment, encouraging entrepreneurship, cutting red tape, and deepening capital markets.
- IMF surveillance to provide granular and tailored policy advice.
Rebuilding fiscal buffers:
- Public debt and debt servicing ratios in Asia are well above pre-pandemic levels, especially in many Pacific Island countries and emerging markets.
- Well-designed and growth-friendly fiscal consolidation can reduce debt risks and create fiscal space to deal with shocks and challenges like ageing or climate change.
- The Fund can provide capacity development, including peer-to-peer learning.
Strengthening cooperation:
- Regional cooperation can help buffer against shocks and heightened uncertainty.
- Rapid advancement in AI, digital connectivity, and cross-border digital payments among Asian countries could be a significant boost to growth.

The IMF remains at the center of the Global Financial Safety Net (GFSN).
Deputy Managing Director’s objective: ensure the IMF remains financially strong and sound well into the future.
Commitment to help Regional Financing Arrangements (RFAs) in Asia be important elements of the GFSN.

Hope that the conference sessions contribute to strengthening ties among participants as they navigate uncertain times together.
Concluding thanks.

Source: Opening Remarks by Deputy Managing Director Kenji Okamura at the 7th IMF-JICA Conference, February 13, 2025.