|
Friday, September 15, 2006
IMF tells RP to fix deficit
SINGAPORE—Asia is set for another year of robust growth as the twin engines of China and India drive the emerging economies and Japan extends a recovery from its long slump, the IMF said yesterday.
Emerging Asia will see growth of 8.3 percent this year and 8.2 percent in 2007, after 8.5 percent in 2005, the International Monetary Fund (IMF) said in its twice-yearly World Economic Outlook report.
The IMF had predicted growth of 7.9 percent in 2006 and 7.6 percent next year in its last report in April.
“Growth continues to run above eight percent in emerging Asia, with much of the momentum due to vibrant expansions in China and India,” the Washington-based global economic watchdog and lender said.
“The outlook is for continued strong growth ... reflecting more favorable global economic conditions, continued high growth in China, and moderate deceleration in India after the strong momentum in 2005 and early 2006,” it said.
Reforms
Asia’s substantial foreign reserves buildup and persistent current account surpluses have strengthened the region’s ability to withstand financial market turbulence, but the region should press ahead with structural reforms to improve its defenses against external risks, the IMF said.
“Policymakers across the region should take advantage of the broadly favorable growth outlook to implement structural reforms aimed at promoting fiscal sustainability and reducing vulnerabilities,” it said.
Asian economies with significant public debt or budget deficits —including the Philippines, Indonesia and Indi— should work at improving their fiscal positions, said the IMF.
For Indonesia and the Philippines, it said “the structure of public debt is associated with foreign currency risks, and continued fiscal consolidation and improvements in the composition of this debt would contribute to reducing the vulnerability to swing in global investor sentiment and enhance monetary policy credibility.”
China’s economy, the fourth largest in the world, will grow 10 percent this year and the next, faster than the April estimates of 9.5 percent and 9.0 percent, the IMF said.
For India, growth is projected at 8.3 percent in 2006 and 7.3 percent the following year, it said. (AFP)
For Bisaya stories from Cebu. Click here. (September 15, 2006 issue)
Write letter to the editor.Click here.
Join the Sun.Star message board.Click here. |
|
[return to top]
[home]
[network page]
|
LOCAL NEWS
BUSINESS
OPINION
SPORTS
LIFESTYLE
FEATURE
SUPERBALITA
WEEKEND
|
