IMF calls on Asia to become growth engine

IMF calls on Asia to become growth engine

The International Monetary Fund (IMF) has forecast 5.75 per cent GDP growth for Asia next year and called on the region to play a leading role on the recovery path.

Speaking at a conference organised by the Monetary Authority of Singapore, IMF managing director, Dominique Strauss-Kahn described Asia as “an important part of the solution”.

“Thanks to strong fundamentals and quick forceful policy repsonses to the crisis, Asia has performed considerably better than other regions of the world – and has thus played and important role in supporting global recovery,” he said while noting the region’s forecast GDP growth is almost double the 3 per cent above expected for the global economy.

The comments echo those of many who have called for the region to become a growth engine to “decouple” the world’s respective economies from the US. In particular, Strauss-Kahn said domestic and regional demand would need to be stimulated as “there are limits to the pace of export growth”.

The IMF director also laid out three policy priorities for the post-crisis world economy:

1. Rebalance global demand
2. Strengthening the international monetary system
3. Creating a safer, more stable financial system

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Tags International Monetary Fund (IMF)

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