Kathmandu. Asia’s growth is slowing due to ongoing trade tensions around the world. Krishna Srinivasan, Director of the IMF’s Asia and Pacific Department, has warned that low-income Asian economies could be particularly affected.
Last Thursday, the IMF estimated that growth in the Asia and Pacific region would slow to 3.9 percent this year amid rising trade tensions. That’s a 0.5 percentage point drop from its previous projection. In an interview after the IMF released its latest forecast for Asia, Srinivasan said tariffs, trade tensions, increased uncertainty and tighter financial conditions were the reasons for the downgrade.
Increasing uncertainty, tighter financial conditions and weaker external demand could all have a negative impact on the region. The IMF official said that small and low-income economies facing the threat of US tariffs could be hit the hardest. Srinivasan encouraged Asian economies to boost domestic consumption and develop a balanced growth model that relies on both domestic demand and exports. The IMF official also suggested strengthening regional economic integration.
प्रतिक्रिया दिनुहोस्