Global Biz

IMF sees strong growth but signs of overheating in Asia

(Xinhua)
Updated: 2011-04-17 08:12

WASHINGTON - Economic growth in Asia will keep robust this year and the next, but there are signs of overheating, said a senior official of the International Monetary Fund (IMF) on Saturday.

"We see Asian economy remain robust in 2011 and 2012," said Anoop Singh, director of Asia and Pacific Department of the IMF at a press briefing during the IMF and World Bank spring meetings here in Washington.

"China and India will continue to lead the economic growth in this region," Singh told reporters.

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According to the IMF's latest World Economic Outlook report released on Monday, economic growth rate in developing Asian countries will reach 8.4 percent both in 2011 and 2012.

Chinese economy is projected to grow 9.6 percent and 9.5 percent this year and the next. Indian economy will increase 8.2 percent and 7.8 percent respectively.

But the overheating pressure has been building in the past several months, Singh warned.

Driven by food and fuel prices spike, the rising inflation pressure has become the key concern of many Asian countries.

To tackle inflation will be the "top policy" for China and India in coming months, said Singh.

He also mentioned that the recent earthquake and tsunami as well as nuclear disaster happened in Japan would have negative impact on the global supply chain in the short run. However, it may not drag down the overall robust Asian growth prospect.

Singh noted that the tightening monetary policies that have been taken by China and other major Asian economies are proper to deal with the challenges.