The Next Phase of Asia’s Economic Growth


By Anoop Singh

(Version in 中文,  日本語 and 한국어)

As the economic recovery has matured across much of Asia, the region has continued to be a driving force in the strengthening global recovery. Yet, recent tragic events—around the globe, and the earthquake and tsunami in Japan—are an all too poignant reminder of the fragility of our economic circumstances and, indeed, life.

Much of this weighs on my mind as I am here in Hong Kong to launch our April 2011 Regional Economic Outlook: Asia and Pacific. While the outlook is by no means gloomy, it is an opportune time to consider how Asia should manage the next phase of growth. Continue reading

What Drives Inflation in Asia and Why it Matters


By Anoop Singh

(Version in 日本語)

Of all the things policymakers have had to worry about in the past couple of years, inflation wasn’t one of them. Some even heralded the end of inflation.

Today, inflation still isn’t a ‘problem’ in Asia. For the most part, it remains relatively modest, but it is on the rise in some countries in the region. And understanding what is driving that inflation matters. Policymakers need to consider the sources of inflation in making the right policy choices. What policy tools to choose. Continue reading

Continuing the Momentum—Asia’s Updated Economic Outlook


By Anoop Singh

Asia’s leadership of the global economic recovery is continuing unabated. And, even though heightened risks mean there may be tough times ahead again, the region is well equipped to handle them.

Asia’s remarkably fast recovery from the global financial crisis continued in the first half of 2010, despite the recent tensions in global financial markets. In fact, GDP growth in the first quarter was generally stronger than we anticipated in our Regional Economic Outlook in April. And high-frequency indicators suggest that Asian economic activity remained brisk in the second quarter. Even more notable, this is true both for economies that escaped a recession in 2009, thanks to their relatively larger domestic demand bases (China, Indonesia, and India), and for the more export-oriented economies such as Japan, the Newly Industrialized Economies (NIEs), and the rest of the ASEAN.

Two growth engines

What explains the strong economic momentum across the region? It is simple. The two “engines of growth” that spurred Asia’s recovery in 2009— exports and private domestic demand—have remained robust in 2010.

Continue reading

Asia: The Challenge of Capital Inflows


By Anoop Singh

As I have highlighted in previous posts, Asia has been leading the global recovery and it is expected to continue doing so in the near term.

Not only has Asia’s rapid growth helped output return to pre-crisis levels relatively quickly, it has attracted large capital inflows into the region. Foreign capital has poured in, attracted by Asia’s strong fundamentals and bright growth prospects. Portfolio and cross border banking flows have rebounded sharply as financial conditions normalized.

Looking ahead, our growth projections suggest that Asia is expected to outperform advanced countries. As a result, the region is likely to continue to attract significant capital inflows, assuming that fallout from the euro zone sovereign debt crisis is contained and that the recent spike in global risk aversion abates.

Continue reading

Asia: Leading the Global Recovery


By Anoop Singh

(Version in 中文,  日本語 and 한국어)

I am in China this week to present our new Asia-Pacific Regional Economic Outlook in Shanghai. I remain as impressed as ever by China’s energy and vibrant growth, an impression that is reinforced every time I return to this country.

China is of course an important part of Asia. And Asia is now a key driver of the global recovery. Indeed, as the world climbs out of its deepest recession in over half a century, it is Asia that is leading the recovery. While growth in the advanced world is being held back for now by unemployment and weak household and bank balance sheets, in the emerging world – and particularly Asia – it is rebounding strongly.

Continue reading

2010 Outlook: New Year, New Decade, New Challenges


By John Lipsky

The year 2010 has opened amid generalized—–but tempered—optimism about the global economic and financial outlook.

 The unprecedented scale and scope of the anti-crisis measures taken during the past year—and the unprecedented degree of multilateral policy coordination involved in their design and implementation—appear to have succeeded in averting a downturn of historic proportions.

 The improved prospects are evident in economic data, in financial market performance, and in the marking up of economic forecasts. In fact, somewhat more upbeat expectations no doubt will be reflected in the regular January update of the IMF’s World Economic Outloook forecast.

Continue reading

Follow

Get every new post delivered to your Inbox.

Join 780 other followers

%d bloggers like this: