ISLAMABAD: Asian-pacific region will remain as the most dynamic in the world but more reforms are need to keep the momentum, said an IMF official.
“We believe the Asian-pacific region will continue to remain as the most dynamic in the world although the growth rate in 2014 will not be as tall as it was in the few years ago,” said Changyong Rhee, director of the Asia and Pacific department of International Monetary Fund (IMF) in a press briefing at the IMF- World Bank Spring Meetings, Xinhua News reported Saturday.
“Main drive of this growth is definitely an improvement of external demand due to the recovery of the advanced economies,” said Rhee.
According to the expectation of IMF, the Asian economies growth rate will edge up to 5.4 percent in 2014 and 5.5 percent in 2015, slightly upwards from 5.2 percent in 2013.
China is expected to grow at around 7.5 percent in 2014, lower than the 7.7 percent last year, but “it should be regarded as a desirable adjustment to a more sustainable growth path,” said Rhee.
According to IMF data, in 2014, the growth rate In Japan will be 1.4 percent and India’s growth rate will increase to 5.4 percent. ASEAN economies will become “a new growth port” of the Asian economies as their growth rate will reach 5.0 percent in 2014.
“Despite this continuing growth momentum, I think it is not the time for complacence. It’s time for Asia to vigilant and reform,” said Rhee.
Rhee said the global financial crisis has caused the fiscal policy spaces for many Asian economies narrowed quite seriously and the total imbalance has been widened too.
“So without reform I think Asia becomes relatively more vulnerable. So continuing reform effort is very important not only to maintain this close momentum but also to secure the short-term financial stability,” Rhee said.