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Asia's economic growth spurts

Jan 26 2010 17:04

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Washington - Asia's developing economies are seeing acceleration in 2010, led by China's 10% growth rate, the IMF forecast on Tuesday as the region recovers swiftly from a global downturn.

The emerging economies in the region are set to grow at an average 8.4% this year as well as in 2011, compared with the 6.5% in 2009, the International Monetary Fund said in its World Economic Outlook update.

China's growth was likely to slow to 9.7% next year after posting 10% this year and 8.7% in 2009, the IMF said.

The Washington-based fund said "key emerging economies in Asia are leading the global recovery" as the region.

India is expected to join China in providing impetus to growth in Asia this year and in 2011.

India should post 7.7% growth in 2010 and 7.8% next year after managing 5.6% last year, according to the IMF projections.

Japan is poised to emerge with a growth of 1.7% in 2010 -unchanged from the last forecast - after a sharp 5.3% contraction last year, the IMF said, adding that Asia's richest economy could accelerate to 2.2% next year.

Gross domestic product in China returned to double-digit growth in the fourth quarter of 2009 at 10.7%, according to the Chinese authorities last week.

And it surpassed the government's target of eight percent, a level that is seen as crucial to foster job creation and stave off social unrest in China's urbanising population of 1.3 billion people.

But China's biggest rise in inflation in 13 months underlined the broader challenges of breakneck growth, and came as the IMF and World Bank warned anew that the country could face an economic bubble.

Asia's growth forecast is above that for the world's emerging and developing economies of about six percent in 2010 following a modest two percent last year.

The IMF sees more rapid output in 2010 for the world's developing economies.

"Stronger economic frameworks and swift policy responses have helped many emerging economies to cushion the impact of the unprecedented external shock and quickly re-attract capital flow," it said.

- Sapa

 
 
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