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Active reforms seen helping Asian economies to stay resilient: MAS
ASIAN economies are expected to remain resilient amid active reforms by policy makers and improved economic fundamentals, the Monetary Authority of Singapore (MAS) said in its annual Financial Stability Review on Thursday.
According to the report by the central bank's Macroeconomic Surveillance Department, the present reprieve in financial markets provides an opportunity for authorities to step up structural reforms and anchor investors' confidence in the region, while balancing their objective of near-term growth.
It noted that Asia has seen an uplift in external demand on the back of the economic recovery in G3 comprising the eurozone and the United Kingdom, Japan and the United States. However, downside risks remain as growth momentum in the G3 falters in late 2014.
"The outlook across Asia is mixed in the presence of varying domestic headwinds. Structural reforms and policy tightening in some countries will further constrain domestic demand," MAS said.
Looking ahead, Asia's economic momentum hinges on sustained recovery in the G3 and economic stabilisation in China, it added.