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IMF: strong but overheating growth in Asia

0 CommentsPrint E-mail China.org.cn, April 17, 2011
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According to IMF report, economic growth is expected to remain at close to 7 percent in Asia in 2011-2012. However, signs show that growth overheating risks the regional economy.

"We see Asian economy remain robust in 2011 and 2012," said the Director of the IMF's Asia and Pacific Department, Anoop Singh, at a press briefing during the IMF and World Bank spring meetings in Washington.

According to Xinhua report, China and India will continue to lead the regional economic growth. Chinese economy is projected to grow 9.6 percent and 9.5 percent this year and the next. Indian economy will increase 8.2 percent and 7.8 percent respectively.

But the overheating pressure has been building in the past several months, Singh warned.

Driven by food and fuel prices spike, the rising inflation pressure has become the key concern of many Asian countries.

To tackle inflation will be the "top policy" for China and India in coming months, said Singh.

He also mentioned that the recent earthquake and tsunami as well as nuclear disaster happened in Japan would have negative impact on the global supply chain in the short run. However, it may not drag down the overall robust Asian growth prospect.

Singh noted that the tightening monetary policies that have been taken by China and other major Asian economies are proper to deal with the challenges.

About the IMF

The International Monetary Fund (IMF) is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.

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