IMF: Asia needs to use policy room to address economic challenges

Asia is a bright spot of the global recovery, but policymakers in the region need to use policy room to address fresh challenges on the horizon, an official with the International Monetary Fund (IMF) said on Friday.

Leading economic indicators for Asia have strengthened, and growth is gaining momentum, anchored by robust growth in China, Anoop Singh, director of the Asia and Pacific Department of the IMF, said at an IMF press conference during the spring meetings of the IMF and its sister agency the World Bank kicking off on Friday.

Policymakers in the emerging Asia need to tackle challenges including overheating, mounting inflationary pressure and rebounding capital inflow, and they have policy instruments and space to deal with the challenges, Singh said.

China needs to continue with shifting its economic growth model and boost domestic consumption to keep strong growth in the future, he stressed.

Xinhua