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IMF says uneven, fragile global growth poses challenges to developing Asia
[TOKYO] Global growth remains uneven and fragile, and the weaker-than-envisaged global economy poses important challenges to developing Asia, a senior IMF official said, citing weak investment as a key negative factor in the region.
The global economy faces the prospect of subpar growth, despite a boost from the recent drop in oil prices, with diminished prospects in China, Russia, the euro area and Japan, IMF Deputy Managing Director Naoyuki Shinohara told a seminar.
Mr Shinohara flagged the risk of high dollarization in emerging Asia, which has drawbacks, such as limiting exchange rate flexibility to mitigate against external shocks and constraining the central bank's ability as lender of last resort. He called for consideration towards actively promoting "de-dollarization".