Posted on October 13, 2011 by iMFdirect
By Anoop Singh
(Versions in 中文, 日本語)
Recent large equity sell-offs across Asia and safe haven flows into Japan illustrate perfectly the region’s vulnerabilities to further global shocks. While the region’s fundamentals—built up over the past decade—remain relatively strong, economic uncertainties in Europe and the United States pose large downside risks.
The world economy has entered a dangerous new phase and, as the IMF’s Managing Director stated recently, “what makes the situation all the more urgent is that it has implications for every country.”
Our Regional Economic Outlook for Asia and the Pacific emphasizes these risks, and stresses the need for policymakers to remain vigilant and nimble in this extraordinarily uncertain climate. The view from here in Tokyo—looking out at the region—may be more serene than the view from other advanced country capitals, but there are storm clouds on the horizon. Continue reading
Filed under: Asia, Economic outlook, Emerging Markets, Europe, growth, IMF, Inequality, International Monetary Fund, Low-income countries | Tagged: credit growth, derivative markets, domestic demand, downside risks, economic rebalancing, external shocks, foreign investors, global demand, iMFdirect, inclusive growth, inflation, infrastructure investment, International Monetary Fund, monetary policy, overheating, Regional Economic Outlook: Asia and Pacific, stressed banks, unemployment | 1 Comment »
Posted on May 18, 2010 by iMFdirect
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.
Filed under: Asia, Economic Crisis, Economic research, Financial Crisis, IMF | Tagged: capital inflows, China, debt crisis, domestic demand, foreign investors, Hong Kong, infrastructure development, investment climate, labor market, price bubbles, property prices, risk aversion | 1 Comment »