Posted by: mulrickillion | October 14, 2011

Press Release: Asia Needs to Navigate the Uncertain Global Environment and Build Inclusive Growth, Says the IMF’s Asia-Pacific Regional Economic Outlook

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Press Release No.11/360
October 13, 2011

Fears about the spillovers from global growth amid still high inflation pressures in much of the region mean that policymakers in Asia face a delicate balancing act, the International Monetary Fund (IMF) said in its latest Regional Economic Outlook (REO) for Asia and the Pacific, which was released in Asia today.

Growth in Asia has moderated since the second quarter of 2011, mainly reflecting a weakening of external demand. Domestic demand is still resilient, and it should continue to sustain activity across the region, contributing to relatively robust growth of 6.3 percent in 2011 and 6.7 percent in 2012 on average, slightly below our forecast last April. In Japan, the tragic earthquake and tsunami earlier this year had grave social and humanitarian costs and also set back the recovery; however, domestic demand is picking up as reconstruction efforts get under way and growth is expected to reach 2.3 percent next year. Meanwhile, inflation pressures have been elevated in a number of other Asian economies amid accommodative financial conditions, but should recede as food and energy prices gradually moderate.

Nevertheless, the report cautions that risks for the Asia and Pacific region are decidedly tilted to the downside. An escalation of the euro area financial turbulence and a more severe slowdown than anticipated in the United States would have clear macroeconomic and financial spillovers to Asia. While domestic demand remains strong, “Asia has clearly not “decoupled” from advanced economies,” the IMF says. . . .

Press Release: Asia Needs to Navigate the Uncertain Global Environment and Build Inclusive Growth, Says the IMF’s Asia-Pacific Regional Economic Outlook

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