Seeking stability, outperformance in Asia and the Pacific

ASIA and the Pacific are doing well, with the region expected to remain the world's growth leader. This contrasts with the global economic landscape, where growth remains uneven against a backdrop of falling oil prices, sharp variations in exchange rates of major currencies, and potential market volatility.

While momentum in advanced economies has picked up, several major emerging markets have lost steam. The prospect of a "new mediocre" for the world economy lingers, with medium-term forecasts being marked down again and potential growth constrained.

According to the IMF's latest Asia and Pacific Regional Economic Outlook, growth in the region is expected to hold steady at 5.6 per cent in 2015, easing slightly to 5.5 per cent in 2016. Domestic demand is forecast to remain strong, supported by healthy labour market conditions, historically low interest rates, and more recently, the fall in oil prices. Exports will continue to benefit from the recovery in advanced economies and weaker exchange rates in some economies, despite the slowdown in some major emerging markets and the trend decline in exports' responsiveness to partner country demand, reflecting greater on-shoring of production.