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IMF has called for the continuation of monetary and fiscal stimuli in Asian countries till clear signs of economic recovery become visible. According to the IMF official, the global economy is recovering the recession with India and China leading the emerging nations’ recovery process.
According to the IMF director (Asia and Pacific Department), Anoop Singh, who was addressing the media before the Fund-Bank meeting in Istanbul, slated to kick off from Oct 6, mentioned that, "Real GDP in the second quarter surprised mostly on the upside, with an expansion in France, Germany and Japan and a slower pace of contraction elsewhere, including in the United States”.
"Emerging economies, led by China and India, are turning around even more strongly," he said. When checked on a region-wise recovery, Asia seems to be overcoming recession at a stronger and faster rate when compared to other regions. But he has asked the Asian nations to continue providing the stimuli packages still recovery is stablized.
"Fiscal and monetary policies (in Asia) should, therefore, continue to provide stimulus," Singh said. According to him the regional banks possess the provisions for “accommodative monetary conditions” till clear signals of economic recovery are obtained.
However, Singh also pointed out that there is considerable heterogeneity within Asia as there are cases where inflation has now started to turn upwards.
