Asian Economies to Continue Leading Global Economic Growth Through 2018 - IMF

Emerging economies in East and South Asia can expect economic growth to top 5 percent this year and in 2018, providing an opportunity for long-term expansion with policies that make foreign investment more attractive, according to a report by the International Monetary Fund (IMF) on Tuesday.

WASHINGTON (Sputnik) — The biggest risk to the region is a tightening of global financial conditions, the report warned. One risk would be a stronger US dollar as a result of inflation-fighting interest rate increases in the United States.

"In emerging and developing economies, attracting foreign direct investment and expanding the economy’s capacity to absorb new technology and boost domestic investment is more urgent," the report stated. "These steps will help the region to build on and continue with the growth momentum."

In China, the report predicted growth of 6.6 percent in 2017 and 6.2 percent in 2018, slow by historical standards, but reflecting the nation’s transition from an emerging to mature economy.

India’s growth is expected to rebound to 7.2 percent in fiscal 2017-18 due to increased spending by the nation’s consumers and investment by businesses, the report noted.

Growth in the region’s two most mature economies, Japan and South Korea, is likely to remain sluggish at 1.2 percent and 2.7 percent respectively in 2017 respectively, the report predicted.