IMF Lowers Asian Growth Forecast, Citing US, European Troubles

Posted October 13th, 2011 at 4:40 am (UTC-5)
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The International Monetary Fund says near-term risks to Asia’s economy are rising because of financial turbulence in Europe and a possible slowdown in the United States.

In a twice-yearly report released Thursday, the IMF lowered its forecast for economic growth in Asia to 6.3 percent this year and 6.7 percent in 2012. It had previously been forecasting growth of almost 7 percent in both years.

The report said domestic demand in Asia remains strong, but the region still is vulnerable to economic shifts in Europe and the United States, which account for more than one-third of its trade. It said the negative outlook in those markets had “decidedly” increased the risk for Asia.