This year should be better for the global economy than what the International Monetary Fund feared six months ago. Owing to action by policymakers in advanced economies, major tail risks have receded. Asia's prospects are also brighter, as discussed in the IMF's Regional Economic Outlook, released on April 29.

After a subdued year, growth is set to pick up gradually to about 5.75 percent, on the back of robust domestic demand and strengthening exports. Economic activity is being held up in part by relatively easy financial conditions - created by accommodative monetary policies, rapid credit growth and a round of capital inflows - as well as intra-regional demand spillovers, notably from growing integration in final consumer goods trade.

Besides, in the absence of shocks to global food and commodity prices, inflation should remain broadly unchanged from last year and generally within the comfort zone of the region's central banks.