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IMF lowers growth forecast for Asia
For the domino effect, the Asian economies affected by the euro crisis and stagnation in the U.S.. The growth model needs to move towards domestic consumption instead of relying on exports. Chinese growth stationary, scaled down in April.
Hong Kong (AsiaNews / Agencies) - The International Monetary Fund lowered its growth forecasts for Asia, and warned that the continent "there is no place to hide" and that the euro crisis and the stagnation of 'U.S. economy can create a domino effect that involves Asia.
In its forecast for the Asia-Pacific region, the IMF expects a Gross Domestic Product (GDP)growth of 6.3% this year and 6.7% next year. Its previous estimates for 2011 were of 6.8 and 6.9 for 2012.
The forecasts are based on data collected until the end of September. The financial turmoil of recent months have led to a decrease of 16% of the Asia-Pacific stock index, the heaviest fall since the 2008 crisis.
The IMF recommends that Asian economies correct their growth model reliant on exports to Europe and the United States and increase domestic consumption.
The financial institution has reaffirmed China's economic growth this year at 9.5% and 9% next year. And this, despite warnings from economists about a possible stock market bubble in real estate and bank debts. Last April, however, the IMF lowered its estimates for China, setting them at 9.6% in 2011 and 9.5% in 2012.