Asia needs global economic recovery to exit slowdown: IMF

WASHINGTON: Asian nations will need a recovery in the global economy before the region can exit a slowdown as its trade and financial linkages have increased with the rest of the world, International Monetary Fund (IMF) Managing Director, Dominique Strauss-Kahn said. Most Asian economies have room to boost their fiscal stimulus packages to spur growth, Strauss-Kahn said in an online press briefing in Washington. The region needs higher domestic consumption to be less vulnerable to export demand, and the shift can be done through more public spending, he said. “Asian economies cannot recover alone without the rest of the world,” Strauss-Kahn said. “A rapid recovery in Asia once the world economy regains its footing is possible.” Developing Asia will probably expand until 2010 at an average 5.5 percent, while in the present year it could 2.7 percent. IMF MD underlined this fact that if the world depends on trade protectionism for saving their economy, then it would be a great blunder.