A scene inside the International Monetary Fund headquarters in Washington on April 13, 2023. (ZHAO HUANXIN / CHINA DAILY)

SINGAPORE - Economic activity in the Asia-Pacific region remains on track to contribute about two-thirds of global growth in 2023, the International Monetary Fund said in its October 2023 Regional Economic Outlook for Asia and Pacific released here on Wednesday.

Growth in the region is projected at 4.6 percent in 2023, an increase from 3.9 percent in 2022, and broadly as projected in IMF's May 2023 Regional Economic Outlook.

The IMF said that inflation for all economies in the Asia-Pacific, with the exception of Japan, would fall within central bank targets by the end of 2024

The Asia and Pacific region remains a relatively bright spot compared to the 3-percent expected global growth this year. Its growth is projected to moderate to 4.2 percent in 2024.

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As for inflation, the IMF said that inflation for all economies in the Asia-Pacific, with the exception of Japan, would fall within central bank targets by the end of 2024. The rest of the world, however, will not see inflation returning to the target ranges until 2025 at the earliest.

The boost from China's reopening in the first half of the year was above expectations. Abrupt financial tightening in the United States or within the region would inhibit growth, especially in highly leveraged economies and sectors.

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Strengthening multilateral cooperation and mitigating the effects of fragmentation are vital for Asia's medium-term outlook, according to the IMF.