Brunei Darussalam’s economy is projected to grow 5.8 per cent this year, according to the International Monetary Fund’s (IMF) latest Regional Economic Outlook report.
IMF said economic growth in Asia and the Pacific is poised to slow more than previously estimated this year amid headwinds from the conflict in Ukraine, a resurgent pandemic, and tightening global financial conditions.
Regional gross domestic product will expand by 4.9 per cent, 0.5 per centage points less than we forecast in January and slower than last year’s 6.5 per cent growth rate, according to their latest projections.
They also estimate that inflation will rise faster in many countries, though from relatively low levels.
Slower growth and rising prices, coupled with the challenges of war, infection and tightening financial conditions, will exacerbate the difficult policy trade-off between supporting recovery and containing inflation and debt.
The invasion of Ukraine will pose the biggest challenge for economic growth, with the region’s advanced economies hurt most by reduced demand from Europe and emerging markets feeling the effects of higher global commodity prices, according to the latest projections.
IMF latest World Economic Outlook also lowered the 2022 global growth estimate by 0.8 per centage point to 3.6 per cent. It reflects a 1.1 percentage point cut for the euro area, now seen expanding 2.8 per cent.
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May 17, 2022
