The slowdown in the US economy may have some effect on demand for Asian exports, but its overall impact on the region is likely to be relatively well contained, the IMF said.
The region is expected to see 8.4 percent growth, down marginally on last year's 8.9 percent, the IMF said in its latest global report on Wednesday.
In its World Economic Outlook, the IMF said the short-term outlook for growth in Asia remains very strong.
The report said the US slowdown is being driven by the housing sector "with its effects on overall demand for exports from Asia likely to be muted."
In contrast, the IMF said, the global demand for electronic goods, which is important for Asian regional exports, has remained generally good despite a slight slowdown toward late last year.
The report also said that the importance of the US as a destination for Asian exports has been declining in most countries -- with the important exception of China -- and the role of regional trade has been rising.
The IMF report on emerging Asia, which does not cover Japan, Australia or New Zealand, said that economic activity had continued to expand at a brisk pace, led by strong growth in India and China.
IMF chief economist Simon Johnson, however, warned of a lingering risk that the Chinese and Indian economies could overheat despite recent measures meant to rein in racing growth.
Johnson told a press conference here presenting the report that fixed asset investment in China had grown at a "torrid pace" and there was still a risk of overheating.
"It is unclear whether the Chinese economy will slow consistently in response to efforts to rein in rapid credit growth given the constraints on monetary policy posed by the tightly managed exchange rate," he said.
As for India, "spare capacity in the economy remains very low and overheating remains a risk despite recent monetary policy tightening," he said.
In China, real gross domestic product expanded by 10.7 percent last year on the strength of solid investment and export growth, "although the pace of fixed asset investment cooled in the second half of the year" in response to a tightening of interest rates, according to IMF's report.
In India, real gross domestic product growth of 9.2 percent was supported by the strength of consumer spending, investment and exports, the report said.
The demand for products, particularly electronic goods, helped accelerate growth in South Korea as well as in Taiwan, Hong Kong and Singapore, the IMF said.
The report said the pace of activity has picked up in Thailand and Malaysia while damage to agriculture from typhoons led to a slowdown late last year in the Philippines.
Inflationary pressures across the region remain generally well contained, the IMF said, with monetary tightening -- and currency appreciation in some countries -- having limited the second round impact of oil price increases last year.
The IMF said Thailand's economy would expand 4.5 percent this year from 5.0 percent last year. Singapore's growth will be down more steeply from 7.9 to 5.5 percent, it said.
The report said that Taiwan's economic growth would slow from 4.6 to 4.2 percent, the report predicted, and South Korea's from 5.3 to 4.6 percent.
Indonesia, the region's third-most populous country, was set to see growth pick up from 5.5 percent last year to 6.0 percent this year, the IMF said.
A decade after the Asian financial crisis, the report warned that financial markets in the region remained vulnerable to any unanticipated rise in global risk aversion.
It also highlighted emerging threats to growth, saying bird flu, which has killed about 170 people across the world but mostly in Asia, continued to pose a risk.
HONG KONG SECURITY: The president blasted regulations requiring Taiwanese agents or political organizations to provide information on their Hong Kong-related activities President Tsai Ing-wen (蔡英文) yesterday warned of countermeasures should controversial Chinese national security legislation imposed on Hong Kong undermine or harm Taiwanese interests. Article 43 of the legislation empowers the Hong Kong Special Administrative Region to serve written notices to Taiwanese political organizations or individual agents to furnish information on their Hong Kong-related activities, including their personal particulars, finances, assets, expenditure and capital in the territory. Failure to comply or providing false or incomplete information can result in a fine of HK$100,000 (US$12,903) or imprisonment of six months or two years respectively. Tsai said that Taiwan would keep a close watch on how
CAUTION: Taiwanese should be alert, even if they have just liked or shared posts that would breach Beijing’s national security legislation for Hong Kong, the council said Due to the newly implemented Hong Kong national security legislation, the Mainland Affairs Council (MAC) has drawn up a list of what it described as “high-risk groups,” cautioning them not to travel to Hong Kong. People who support independence for Taiwan, Hong Kong, Tibet and Xinjiang; those who are critical of the Chinese Communist Party (CCP), the Hong Kong government and the “one country, two systems” concept; and those who donated to or voiced support for the Hong Kong anti-extradition bill movement are urged to refrain from visiting Hong Kong, the council said on its Web site. It released two posts on
MORAL COURAGE: The Ministry of Foreign Affairs urged the global community to face China’s intention to subdue Taiwan and reject such irrational requests The Ministry of Foreign Affairs yesterday strongly condemned the Chinese government for meddling with US officials’ interactions with Taiwan after FBI Director Christopher Wray revealed China’s efforts to discourage US officials from visiting Taiwan. The greatest long-term threat to the US’ information security and intellectual property, as well as its economic vitality, is China’s counterintelligence and economic espionage operations, Wray told a video event at the Hudson Institute in Washington. Beijing is engaged in a highly sophisticated and maligning foreign influence campaign, with methods that include bribery, blackmail and covert deals, he said. Giving an example, Wray said that when a US official
CAUTION: Taiwan had zero cases of death from food poisoning for six years until last year, when two people died after eating wildlife, an FDA official said The Food and Drug Administration (FDA) yesterday urged the public not to eat wildlife or unidentified wild plants, as they could be fatal, with nearly 7,000 people affected by food poisoning last year, including two deaths due to wildlife consumption. The number of food poisoning incidents increased by nearly 50 percent last year, from 398 cases involving 4,616 people in the previous year to 503 cases involving 6,944 people, FDA data showed. That figure was the second-highest in history, the FDA said, adding that the highest number was recorded in 1997, with 7,235 people. Among the 503 cases, 87 were food poisoning clusters