Asia remains in the lead, with global economic recovery.Strong growth in the region is set to continue,according to a report from the International Monetary Fund. But it also warns of the region's emerging inflationary pressures.
In its twice-yearly report of Asia and the Pacific region, IMF economists say growth in the first half of 2010 has surpassed expectations in almost all, regional economies. That has prompted the IMF to revise its growth forecast to 8 percent, nearly 1 percentage point higher than its April forecast.
"We raised the outlook for Asia. It remains a global leader in the recovery," Anoop Singh, director of IMF Asia Pacific said. "Domestic demand is picking up across Asia. Most Asian economies are now seeing output gaps closing and and immediate challenge is the speed with which Asia exits from the policy stimulus."
But, IMF economists say inflationary pressures are building. The report says prices in some property markets are growing at double-digit rates, and capital inflows could add further inflation pressures in the upcoming months.
Economists say it's time for countries in the region to normalize monetary and fiscal policies.
This time, the Washington-based IMF releases the report in the Indonesian Capital of Jakarta.
"We are trying to expand our presence in Asia. We're trying to increase our emphasis on financial sector issues," Anoop Singh said. "We are doing much more in terms of the dissemination of our work in our research, our regional outlook, and we have more contacts with Asian countries across the region."
Analysts say the IMF's move is part of an ongoing effort to re-engage with Asia.
(CNTV.cn October 19, 2010)