The IMF Just Cut Its Growth Forecast For Asia Blaming Europe And The US

AP | Oct. 13, 2011, 2:47 AM | 229 |   x You have successfully emailed the post. HONG KONG (AP) — The International Monetary Fund trimmed its economic growth forecasts for Asia on Thursday because of financial turbulence in Europe and a possible slowdown in the U.S.

The risks to Asia's growth are "decidedly tilted to the downside" reflecting the negative outlooks for Europe and the U.S., which are the major markets for the region's exports, the IMF said in a twice-yearly report.

Asia's economic growth is forecast to average 6.3 percent in 2011, rising to 6.7 percent in 2012. That's lower than the IMF's April forecast of nearly 7 percent in both years.

IMF officials warned that an escalation of the debt crisis affecting nations that use the euro, and a more severe slowdown in the United States, would hit Asia too.

Europe and the U.S. together still "constitute more than a third of trade in Asia, therefore any uncertainties ... in advanced economies will have a significant effect on Asia," said IMF Asia-Pacific Director Anoop Singh.

"Although domestic demand remains strong, we cannot assume Asia will be immune from risks if they materialize in the rest of the world," said Singh.

Inflation is still strong in a number of Asian countries but the report said consumer prices are expected to ease after peaking this year as food and energy prices "gradually moderate."

Please follow Money Game on Twitter and Facebook.

x

To embed this post, copy the code below and paste into your website or blog.

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.