News / Asia

IMF: Growth Prospects Weaken in Emerging Asia, Pacific Economies

IMF: Growth Prospects Weaken in Emerging Asia, Pacific Economiesi
X
October 12, 2013 1:35 AM
The International Monetary Fund says global growth patterns are shifting once again. The IMF’s latest outlook shows declining prospects for the Asia and Pacific regions -- down collectively nearly 1 percent from initial forecasts earlier this year. For most countries, the impact should be partially offset by improving conditions in advanced economies. But as Mil Arcega reports, fiscal and political problems in the U.S. continue to create uncertainty worldwide.

IMF: Growth Prospects Weaken in Emerging Asia, Pacific Economies

— The International Monetary Fund says global growth patterns are shifting once again. The IMF’s latest outlook shows declining prospects for the Asia and Pacific regions - down collectively nearly 1 percent from initial forecasts earlier this year. For most countries, the impact should be partially offset by improving conditions in advanced economies. Fiscal and political problems in the U.S., though, continue to create uncertainty worldwide.

The IMF says the worst of the European debt crisis may be over, but tighter global liquidity and slow growth in China has dampened industrial activity in emerging countries in Asia and the Pacific.

IMF’s chief economist, Olivier Blanchard, said, “The good news is Europe seems to have started growth again. In emerging market economies, that’s where the bad news is."

China’s economy, which has been largely insulated from recent market volatility, will expand at a slower pace - 7.6 percent this year, slowing again to 7.3 percent in 2014.

India, where inflation is approaching double digits, is projected to grow 3.8 percent this year, down 2 percent from earlier forecasts.   

And Australia, which does a lot of business with India, likely will expand half a percent more slowly in 2013 - at two-and-a-half percent.

The bright spot is Japan, where heavy government stimulus appears to have lifted the country out of a deflationary cycle.

But IMF Managing Director Christine Lagarde said the ongoing political impasse in the world’s largest economy is complicating prospects for future growth.

“Obviously, we know and you know by now that failure to raise the debt ceiling would cause serious damage to the U.S. economy, but also to the global economy,” she said.

Unless Congress can reach agreement on the debt ceiling, the U.S. will run out of money to pay its obligations by October 17. If that happens, economists say financial markets will crash, interest rates will soar and the U.S. could slip back into recession.

Economist Erik Brattberg said many countries are worried. “They look at what’s happening in Washington right now and they wonder why this is happening? Why are they doing this? This is clearly not a good thing.  Why can’t they just work it out?”

The good news is that Washington lawmakers appear to be moving closer to a compromise.

Barring a calamitous U.S. default, the IMF says growth in emerging countries should strengthen, helped in part by increasing demand and growth in advanced economies.

You May Like

Video On the Scene: In Gaza, Darkness Brings Dread and Death

Palestinians fear nighttime raids, many feel abandoned by outside world, VOA's Scott Bobb reports More

African Small Farmers Could Be Key to Ending Food Insecurity

Experts say providing access to microloans, crop insurance, better storage facilities, irrigation, road systems and market information could enable greater production More

University of Michigan Wins Solar Car Race

Squad guided its student-designed solar-powered vehicle to fifth consecutive time victory in eight-day bi-annual American Solar Challenge More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Vietnamese Staging Chinese Product Boycott After Oil Rig Spati
X
Reasey Poch
July 28, 2014 7:18 PM
China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video Vietnamese Staging Chinese Product Boycott After Oil Rig Spat

China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video ESA Spacecraft to Land on a Comet

After a long flight through deep space, a European Space Agency probe is finally approaching its target -- a comet millions of kilometers away from earth. Scientists say the mission may lead to some startling discoveries about the origins of the water on earth. VOA’s George Putic has more.
Video

Video Young Africans Arrive in US for Leadership Program

President Barack Obama's Young African Leadership Initiative has brought hundreds of young Africans to the United States for a six-week program aimed at building their knowledge and skills in fields such as public administration and business. Out of the 50,000 young Africans who applied for the program, just one percent was accepted. VOA's Laurel Bowman caught up with some of those who made the cut and has this report.
Video

Video In Honduras, Amnesty Rumors Fuel US Migration Surges

False rumors in Central America are fueling the current surge of undocumented young people being apprehended at the U.S. border. The inaccurate claims suggest the U.S. will give amnesty to young migrants from the region. As VOA's Brian Padden reports from Honduras, these rumors trace back to President Obama's 2012 executive order to halt deportations for some young undocumented immigrants already living in the United States.
Video

Video Students in Business for Themselves

They're only high school students, but they are making accessories for shoes, fabricating backpacks and doing product photography - all through their own businesses. It's the result of a partnership between a non-profit organization that teaches entrepreneurship and their schools. VOA's Mike O'Sullivan and Deyane Moses met the budding entrepreneurs near Los Angeles.
Video

Video Astronauts Train in Underwater Lab

In the world’s only underwater laboratory, four U.S. astronauts train for a planned visit to an asteroid. The lab - called Aquarius- is located five kilometers off Key Largo, in southern Florida. Living in close quarters and making excursions only into the surrounding ocean, they try to simulate the daily routine of a crew that will someday travel to collect samples of a rock orbiting far away from earth. VOA’s George Putic has more.

AppleAndroid