The Chief of the International Monetary Fund (IMF) said Asian policymakers must brace for possible economic shocks, given risks to the global economy like the eurozone debt crisis.
Asia also faces policy challenges, like managing the sharp rebound in capital inflows, as well as risks related to overheating and asset and credit bubbles, said Dominique Strauss-Kahn, managing director of IMF.
Because the US and Europe are expected to experience a possibly extended period of lower growth, the Asian continent must increase its domestic consumption and investment as a long-term policy issue, said Strauss-Kahn.
"Asia has emerged as a global economic powerhouse… no one can doubt that Asia’s economic performance will continue to grow in importance," he said.
"As Asia’s economic weight in the world continues to rise, its stake in the economic performance of other countries is rising too," he added.
Strauss-Kahn said macroeconomic, corporate and financial sector reforms implemented over the last ten years had played an important role in Asia’s resilience.
"So, despite being hit hard initially, Asia was able to bounce back quickly from the global financial crisis," he said.