Weak global growth a challenge to Asia, says IMF

Tokyo

GLOBAL growth remains uneven and fragile, and the weaker-than-envisaged global economy poses important challenges for developing Asia, a senior International Monetary Fund (IMF) official has said, citing weak investment as a key negative factor in the region.

The global economy faces the prospect of sub-par growth despite a boost from the recent drop in oil prices, with diminished prospects in China, Russia, the euro area and Japan, Naoyuki Shinohara, IMF deputy managing director, told a seminar.

He flagged the risk of high dollarisation in emerging Asia, saying the practice could limit exchange-rate flexibility as a buffer against external shocks; it could also constrain the central bank's ability as lender of last resort.

He called for consideration towards actively promoting "de-dollarisation". Reuters