MAYASIA BUSINESS OUTLOOK8In the month of May, the International Monetary Fund (IMF) raised Asia's economic forecast as China's recovery supported growth, but warned of risks from persistent inflation and global market volatility caused by Western banking-sector woes. According to the IMF, the reopening of China's economy will be critical for the region, with the spillover to Asia focusing on consumption and service-sector demand rather than investment. "Asia and the Pacific will be the most dynamic of the world's major regions in 2023, primarily driven by China's and India's buoyant outlooks", the IMF predicted in its regional economic outlook report. In addition, domestic demand is expected to remain the largest growth driver across Asia in 2023.According to the IMF, "Inadequate short-term tightening would necessitate disproportionately more monetary tightening later to avoid high inflation becoming ingrained, making a larger contraction more likely". Further it added, "costs of failing to bring inflation below target are likely to outweigh any benefits from keeping monetary conditions loose". According to a top government official, India's exports to the UAE are expected to exceed $50 billion by 2026-27, up from $31.3 billion currently, as a result of the countries' free trade agreement. Commerce Secretary Sunil Barthwal stated that, trade between India and the UAE has increased significantly since the trade agreement's implementation on May 1st last year. "We are hoping to achieve $50 billion in exports by 2026-27", Barthwal told reporters.The India-UAE Comprehensive Economic Partnership Agreement (CEPA), which was signed on February 18th, 2022, entered into force on May 1st, last year. In the previous fiscal year, India's exports to the UAE increased by 11.8 percent to $31.3 billion, while imports increased by 18.8 percent to $53.2 billion. Former Chairman of the Council for Leather Exports P Aqeel Ahmed stated that the trade agreement is the 'most effective that we have seen in recent times'. NEWSROOMIMF HEAVES ASIA'S ECONOMIC FORECAST & TELLS BANKS TO TIGHTEN THEIR POLICIESINDIA & UAE TRADE GOING STRONG WITH SPECULATIONS OF TRADE CROSSING $50 BILLION BY 2027
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