By Anoop Singh
Continuing my travels through Asia for the launch of our October 2010 Regional Economic Outlook: Asia and Pacific, I am writing to you today from Singapore. In my last post, I focused on the near-term outlook and challenges for Asia. Today, I turn to the key medium-term challenge—the need to rebalance economies in the region away from heavy reliance on exports by strengthening domestic sources of growth. This is against a backdrop of the need to rebalance global growth that was emphasized over the weekend by the ministers of the Group of Twenty industrialized and emerging market countries.
Heavy reliance, arguably over-reliance, on exports is a common challenge across Asia. Yet, the policies to address it will differ among the countries in the region. Much of the public discussion focuses on ways to increase consumption, and this is something the IMF has written about extensively in the past. But the role of investment in rebalancing growth is equally important and something that should not be overlooked. (more…)
Filed under: Asia, Economic outlook, IMF, International Monetary Fund | Tagged: ASEAN, Asian financial crisis, Association of Southeast Asian Nations, business environment, consumption, economic rebalancing, financial infrastructure, foreign investment, G-20, investment, investment climate, medium-term challenge, newly industrialized economies, private domestic demand, public-private partnerships, rebalance global economy, Regional Economic Outlook: Asia and Pacific | 1 Comment »