Posted on 09 Jul 2009
IMF raises Asia 2009 growth forecast
The International Monetary Fund raised its 2009 growth forecast for Asia's developin economies from 4.8 percent to 5.5 percent but cautioned Wednesday that a sustained rebound will depend on recovery in developed economies.
The Washington-based IMF cited improved prospects for regional giants China and India. It raised its 2009 growth outlook for China by one percentage point to 7.5 percet and for India by 0.9 percentage points to 5.4 percent.
"The upgrade owes to improved prospects in China and India, in part reflecting substantial macroeconomic stimulus, and a faster-than-expected turnaround in capital flows," the IMF said in a report on global growth. "However, the recent acceleration in growth is likely to peter out unless there is a recovery in advance economies."
The announcement follows the World Bank's decision last month to raise its growth forecast for China from 6.5 percent to 7.2 percent due to its stimulus-driven investment boom.
The IMF raised its 2010 growth projection for developing Asian economies from 6.1 percent to 7 percent.
