3 May 2016
IMF’s Asia-Pac outlook: Regional economy to expand by 5.3% despite softening.
IMF's Regional Economic Outlook for Asia and the Pacific reported via Live Squawk reveals the following:
Asia remains the engine of global growth
Regional economy to expand by 5.3% despite softening
Domestic demand continues to show resilience across most of the region, driven by low unemployment, growth in disposable income, lower commodities prices, and macroeconomic stimulus
Policies and reforms needed to boost resilience
China slowdown & risks dominate outlook
China's growth is forecast to moderate to 6.5% this year and 6.2% in 2017. China's economy continues its rebalancing of shifting away from manufacturing and investment to services and consumption. While this transition to slower but more sustainable growth is desirable for both China and the global economy. Meanwhile, consumer expenditure has become a more important growth engine
Japan's growth is expected to continue at 0.5% in 2016, before dropping to -0.1% in 2017 as the effect of the widely anticipated consumption tax increase takes hold (although this forecast does not take into account likely growth-supporting policies to offset the increase). An ageing population and high public debt remain major drags on Japan's long-term growth
India has benefited from lower oil prices and remains the fastest-growing large economy in the world, with GDP expected to increase by 7.5% this year and next
Asia remains the engine of global growth
Regional economy to expand by 5.3% despite softening
Domestic demand continues to show resilience across most of the region, driven by low unemployment, growth in disposable income, lower commodities prices, and macroeconomic stimulus
Policies and reforms needed to boost resilience
China slowdown & risks dominate outlook
China's growth is forecast to moderate to 6.5% this year and 6.2% in 2017. China's economy continues its rebalancing of shifting away from manufacturing and investment to services and consumption. While this transition to slower but more sustainable growth is desirable for both China and the global economy. Meanwhile, consumer expenditure has become a more important growth engine
Japan's growth is expected to continue at 0.5% in 2016, before dropping to -0.1% in 2017 as the effect of the widely anticipated consumption tax increase takes hold (although this forecast does not take into account likely growth-supporting policies to offset the increase). An ageing population and high public debt remain major drags on Japan's long-term growth
India has benefited from lower oil prices and remains the fastest-growing large economy in the world, with GDP expected to increase by 7.5% this year and next