国际英语新闻：IMF sees Asia continuing to lead global recovery

WASHINGTON, Oct. 21 (Xinhua) -- Asia remains firmly in the lead of the global economic recovery and strong growth in the region is set to continue, according to a report released by the International Monetary Fund (IMF) Thursday.

"The expansion in Asia exceeded expectations in the first half of the year, prompting the Fund to revise up its 2010 growth forecast for the region to 8 percent, nearly 1 percentage point higher than its April forecast," the IMF said in its latest Regional Economic Outlook (REO) for Asia and the Pacific.

The Washington-based international financial institution said that economies across the region are expanding strongly.

"China and India are leading the way with projected 2010 growth rates of 10.5 percent and 9.7 percent, respectively, while Indonesia is expected to grow by 6 percent. In Japan, growth is now projected at 2.8 percent."

The fund expects that regional growth in 2011 will reach a more sustainable pace of 6.8 percent.

However, the IMF noted that strong economic growth was leading to new policy challenges.

"Inflationary pressures are continuing to build, while prices in some property markets are growing at double-digit rates," it said.

With Asia set to remain an attractive destination for foreign investment, given the sluggish recovery in the U.S. and Europe, capital inflows could add further to domestic price pressures in the period ahead, the report said.

The time had therefore come for countries in the region to normalize monetary and fiscal policy stances, according to Anoop Singh, Director of the IMF's Asia and Pacific Department.

"We welcome the steps so far taken by policymakers to control inflation risks and limit the build-up of financial sector vulnerabilities but more now needs to be done, given the continued strong growth in the region," Singh said.

The IMF also said Asian economies needed more skillful management of capital inflows into the region, noting that it was a difficult challenge.

"These inflows present many opportunities, but they also pose potential risks to financial stability," it said.