IMF warns US, China pose risk to Asian economy

A lack of clarity about the size of an expected U.S. fiscal stimulus and China’s rapid domestic credit growth are among risks that cloud Asia’s economic outlook, a senior International Monetary Fund official said on Monday.

“Asia continues to be the world leader in growth helped by stronger demand and accommodative policies,” IMF Deputy Managing Director Mitsuhiro Furusawa said in a speech at a seminar in Tokyo on the region’s fiscal policy and demographics.

“Nonetheless, the near-term outlook is clouded with significant uncertainties and risks,” he said.

Sanjeev Gupta, deputy director of the IMF’s fiscal affairs department, delivered the prepared speech on behalf of Furusawa, who could not attend at the seminar as his flight was cancelled. (Courtesy Reuters)