MANILA – Asia is well positioned to remain the most dynamic region of the global economy, the International Monetary Fund (IMF) said in its latest Asia and Pacific regional economic outlook.
It expects growth in Asia to remain steady at 5.4 percent this year, up from an earlier 5.3 percent forecast.
Last year, the region grew 5.2 percent.
The IMF warns, however, that a sharper-than-expected slowdown in China due to financial sector vulnerabilities, coupled with the failure of “Abenomics” to turn Japan's economy around are the two main risks to Asia's economic outlook.
Asia also faces risks originating from outside the region, including a sudden or sharper-than-anticipated tightening of global financial conditions.
The IMF said growth momentum in the ASEAN is likely to remain uneven with Indonesia and Thailand slowing this year.
However, Malaysia and the Philippines are on a more positive trajectory with growth expected to remain robust in 2014 to 2015.
The IMF said that while Asia is resilient and policy frameworks are generally sound, continued vigilance and further reform efforts are needed to underpin growth prospects. -- ANC