IMF warns of increased downside risks for Asian economy

The International Monetary Fund (IMF) on Friday said the outlook for Asia-Pacific economic growth remains "relatively stable", but downside risks have increased, highlighting trade deceleration, higher oil prices and the volatility of the global financial market.

In a press conference at the Spring Meetings of the IMF and the World Bank held in Washington DC, US, Changyong Rhee, director of the IMF's Asia and Pacific department, said trade policy uncertainty could pose a renewed threat to growth.

Rhee suggested countries should adopt appropriate macro-control policies to maintain economic growth and stabilize employment. He pointed out that recent fiscal stimulus policies put forward by economies such as China and the Republic of Korea (ROK) will play an important role in stabilizing growth.

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The IMF believes that the Asia-Pacific region will remain the world's most dynamic region with the strongest economic growth momentum in the future.

It projects that Asia will grow by 5.4 per cent in 2019 and 2020, largely unchanged from its previous estimation in October, Rhee said. He noted that the region continues to account for more than 60 per cent, with China accounting for more than 30 per cent, of global growth.

According to the newly released April 2019 World Economic Outlook, the IMF on Tuesday revised up the 2019 growth projection for China to 6.3 per cent, up 0.1 percentage point from its previous estimation in January.

The IMF also called on Asia-Pacific countries to take active measures to address medium- and long-term challenges, such as declining labour productivity and ageing populations, and to ensure long-term sustainable economic development by investing more in labour markets, education and innovation.