Asia disinflation on track: RBI dy guv

Asia will continue to stay on course with disinflation, and signs are pointing towards alignment with central bank targets, said Reserve Bank of India (RBI) Deputy Governor Michael Debabrata Patra (pictured).

While speaking at the 59th Southeast Asian Central Banks (SEACEN) Governors’ Conference on February 15, the text of which was released by the RBI on Tuesday, he said, “Overall, Asia will likely contribute about two-thirds of global growth in 2024, a carryover of its blockbuster performance in 2023. Another noteworthy development is that disinflation is expected to remain on track in Asia, and convergence with central bank targets is being sighted. Thus, the outlook for Asia in a stormy and unsettled global environment is one of sustained growth with stability.”

He said that the SEACEN membership represents 45 per cent of the world’s population, with its economies’ contribution to global gross domestic product (GDP) increasing from 9 per cent at the start of the century to 27 per cent in 2023.

In terms of purchasing power parity, SEACEN members collectively account for over a third of global GDP, he said.

While varying in income levels, these countries are generally highsaving economies, with an average saving rate of 37 per cent and an investment rate of 36 per cent of combined GDP, highlighting the significance of domestic resources in fueling growth.

“The SEACEN group of countries is also a powerhouse of international trade. It accounted for 31 per cent of world exports of merchandise in 2022 according to the World Trade Organization, attesting to its international competitiveness and its central position in global supply chains. The SEACEN group also absorbs 28 per cent of world imports of merchandise, thereby underscoring the vital role it plays in boosting net global demand,” Patra said.