The IMF upgraded its forecast by 0.3 percentage points from its October 2022 forecast, but warned of risks from persistent inflation and global market volatility driven by Western banking-sector woes.

According to the IMF, the reopening of China's economy is key to Asia with the spillover seen focused on consumption and service-sector demand rather than investment.

China and India will be the main drivers with growth of 5.2% and 5.9% respectively, the IMF said in its regional economic outlook report.