IMF Warns on Asian Economies |
|
February 1, 2011
Fast-growing Asian economies face a risk of overheating and may need to tighten monetary policy further, the head of the International Monetary Fund said Tuesday.
Fast-growing Asian economies face a risk of overheating and may need to tighten monetary policy further, the head of the International Monetary Fund said Tuesday.
Financial and structural reforms over the past decade have helped Asia weather the global economic crisis--the IMF expects growth to reach 8.5% in Asia ex-Japan this year, compared to just 2.5% in the developed world--but now "there are risks of overheating, and even a hard landing," Dominique Strauss-Kahn said in a speech at the Monetary Authority of Singapore.
"This means that macroeconomic policies should be tightened in countries where output gaps have nearly closed, or have in fact already closed," he said. "In Asia, recent rate actions were the right decision--though more may be needed."
Related Links
