Source: CCTV.com

05-06-2009 21:08

Most Asian economies are facing a sharp contraction this year and a weak recovery in 2010, according to the International Monetary Fund. The IMF says that's because global demand for the region's exports is struggling to rebound.

Most Asian economies are facing a sharp contraction this  year and a weak recovery in 2010, according to the  International Monetary Fund.

Asia's collective economic growth will likely slow to 1.3 percent this year from 5.1 percent last year, before expanding 4.3 percent in 2010, the IMF said in a report.

Despite some signs that a plunge in exports and manufacturing may have bottomed out in recent months, the IMF warns that sustained growth won't return to the region before late 2010.

The IMF expects China, the world's third-largest economy, will grow the most of the major Asian countries over the next two years, expanding 6.5 percent in 2009 and 7.5 percent in 2010.

Singapore's economy, which relies heavily on trade, finance and tourism, will likely shrink the most, contracting 10 percent this year and 0.1 percent next year.

The IMF expects the Japanese economy, the region's biggest, to shrink 6.2 percent this year and grow just 0.5 percent next year as a steep drop in exports undermines consumer confidence.

The IMF forecasts the economies of New Zealand, South Korea, Malaysia, and Thailand will contract at least 2 percent this year and grow no more than 1.5 percent next year.

India will likely grow 4.5 percent in 2009 and 5.6 percent in 2010.

The IMF is urging Asian governments to extend fiscal stimulus packages into next year, to help spur domestic demand. The region has pledged more than 800 billion US dollars, led by China's 585 billion for infrastructure projects, tax cuts and cash handouts.

 

Editor:Yang Jie