The International Monetary Fund (IMF) has revised its growth forecast for emerging Asia, predicting a stronger economic outlook for the region, while also cautioning about the risks associated with the Chinese property market. However, the IMF noted that India is expected to remain a bright spot in the region, with robust growth potential.

• The International Monetary Fund (IMF) predicts that emerging economies in Asia will experience a growth rate of 5.2% in 2024, which is a 0.4 percentage point increase from its previous forecast made in October.
• The International Monetary Fund (IMF) forecasted China's economy to grow 4.2% in 2024 in October, but recent estimates suggest it will grow 4.6% instead, which is 0.4 percentage points higher.
• The IMF predicts that India's growth will remain robust at 6.5% in 2024 and 2025, driven by resilient domestic demand.

The International Monetary Fund increased its growth forecast for developing Asia economies in 2024, thanks to India's positive outlook, but cautioned about the risks posed by China's property sector crisis.

The growth rate for emerging economies in Asia is predicted to be 5.2%, a 0.4 percentage point increase from the previous forecast in October. Despite this, it is still anticipated that this year's growth will be lower than the estimated 5.4% growth for 2023.

The IMF predicts that China's economy will expand by 4.6% in 2024, which is 0.4 percentage points higher than its previous forecast in October. This increase is due to the stronger-than-expected growth in the previous year and the higher government spending to combat natural disasters in China.

While upgrading China's growth outlook, the warning remained that a deepening property sector slump or a sudden shift to tax increases and spending reductions could lead to growth disappointments.

The IMF advised that comprehensive restructuring measures must be implemented to address China's property issues. It cautioned that real estate investments may decline more than anticipated and for a longer period, negatively impacting both domestic and foreign growth.

The IMF stated that unplanned fiscal tightening due to local government funding limitations and decreased household spending due to low confidence are both possible scenarios.

The IMF stated that China could experience a stronger recovery if the government implements property sector reforms or provides larger-than-anticipated fiscal support to enhance consumer confidence and demand.

The real estate sector crisis persists, with a Hong Kong court recently ordering a debt-laden developer to liquidate. This news came just after China's central bank and finance ministry announced measures to increase the liquidity available to property developers.

The IMF predicts that India's growth will remain robust at 6.5% in 2024 and 2025, driven by resilient domestic demand. This is a 0.2 percentage point increase from the October forecast.

The IMF has revised its global growth forecast to 3.1% for this year, an increase of 0.2 percentage points from its previous projection, due to the unexpected strength of the U.S. economy and fiscal support measures in China.

According to Pierre-Olivier Gourinchas, the IMF's chief economist, the global economy exhibited remarkable resilience in the latter half of the previous year, and this trend is expected to continue into 2024, as he stated to Karen Tso of CNBC late on Tuesday.

The IMF anticipates global inflation to be 5.8% in 2024 and 4.4% in 2025. In developed economies, inflation is expected to decrease to 2.6% this year, while emerging economies will see a slight decline in inflation from 8.1% to 7.8% in 2024.

— CNBC’s Jenni Reid contributed to this story.