Asia will likely to continue leading the global economic recovery in the near term, with India and China taking the frontline, according to an International Monetary Fund (IMF) official.
“We expect Asia to continue leading the global recovery in the near term and to grow by 8 percent in 2010, before moderating to a more sustainable rate of about 7 percent in 2011,” said Anoop Singh, director of the Asia and Pacific department at the IMF.
However, he noted that several risks remain like: countries must manage their exit from the stimulus measures; the region’s economies must change their focus away from export; and a weaker that expected economic recovery could exploit private demand in the region.
China ranks first in the list of rapid-growth Asian countries with 10.5 percent economic growth, followed by India at 10 percent growth so far this year, according to the IMF.
Private domestic demand continues to boost growth in Indonesia and India, while whole inventory accumulation and strong export growth supported economic activity in economies that target export dependency.
But still, the speed of economic recovery has varied across the region, a global trend in which countries are emerging from the crisis at an uneven clip.