Tue, Apr 30, 2013 - Page 15 News List

Asia risks overheating: IMF says

GROWTH ADJUSTMENTS:The IMF cut its economic growth projections for Taiwan and South Korea, and raised those for the Philippines in its latest Asia-Pacific report


In Asia, some nations must address fiscal deficits, especially where the gap is larger than before the financial crisis, the IMF said. At the same time, most governments also need to increase public spending on education and health, while food and energy subsidies in countries such as China, Indonesia and Malaysia should be eliminated and replaced by programs such as cash transfers, it said.

“To sustain high rates of per capita income growth, the policy agenda will have to vary across a range of priorities, including economic rebalancing, strengthening infrastructure investment, reforms in goods and labor markets, and meeting the challenges from rapid demographic change,” the IMF said.

Additional reporting by staff writer

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