MAYASIA BUSINESS OUTLOOK8In the words of senior International Monetary Fund (IMF) official Krishna Srinivasan, Asian central banks may need to keep monetary policy "tighter for longer" to combat still significant inflation risks. Some regional central banks, such as Australia's, have begun to pause interest rate hikes as their economies and job growth have slowed as a result of global headwinds and previous monetary tightening."Core inflation remains sticky and has recently become a more important driver of headline inflation, which may lead to more persistent inflation and wage pressure", said Srinivasan, the IMF's Asia and Pacific Department director."Asian economies' output gaps are either closing or have already closed, and currency depreciation last year is still affecting domestic prices". "These factors suggest that the battle to keep inflation under control is far from over", he said.While the global outlook remains bleak, Srinivasan said at a news conference on Thursday that China's reopening will support Asia's economy by increasing trade and consumption. The IMF projects 4.6 percent growth in the Asia-Pacific region's economy this year, up 0.3 percentage point from its October forecast and faster than 3.8 percent growth in 2022.According to the most recent forecast, the region will contribute more than 70 percent of global growth this year, according to Srinivasan. The IMF predicts that China's economy will grow by 5.2 percent in 2023, up from 3.0 percent the previous year."China's reopened economy is rebounding strongly, and this will generate positive spillovers to its trading partners, providing fresh momentum for Asia's growth", he said.Awater purchase deal has been reached by the Saudi energy company ACWA Power for the 600,000 cubic metre per day Rabigh four Independent Water Plant that will be built on the nation's Red Sea coast. The Saudi Water Partnership Co, a government off-taker, will be the only customer for the project's services according to sources. The 25-year WPA for the development, construction, operation, and ownership of the water desalination plant utilising reverse osmosis technology was signed between SWPC and Rawabi Water Desalination Co., a project business partially owned by ACWA Power. In accordance with the agreement, the plant will also create its supporting infrastructure and facilities, including 1,200,000 cubic metre potable water tanks. The deal is worth SR2.54 billion ($677 million), and the project's financial close is anticipated to occur in the third quarter of 2023. Ten of the 16 desalination plants operated by Public Investment Fund-backed Company ACWA Power, which are spread across four nations, are located in the Kingdom.Mohammad Abunayyan, chairman of ACWA Power, said: "Our commitment to developing efficient and reliable projects that meet the practical water needs of the community has played a significant role in our contribution towards Saudi Arabia's clean water strategy, including supplying nearly a third of the nation's water needs". "As we move forward, we remain dedicated to advancing our support with our upcoming facility, which will set a new standard in terms of capacity and sustainability", the chairman stressed. NEWSROOMIMF URGES ASIAN CENTRAL BANKS TO REGULATE MONETARY POLICIES FOR LONGER DURATIONSAUDI ENERGY COMPANY ACWA TO INVEST IN DESALINATION PROJECT
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