An International Monetary Fund (IMF) report on the future of the Asia-Pacific economy released during the annual meetings with the World Bank in Tokyo have indicated a slowdown in the region.
"Asia as a whole, GDP growth fell to its lowest rate since the 2008 global financial crisis during the first half of 2012," Director of the Asia and Pacific Department of the IMF Anoop Singh said.
External problems played a major role, as the recovery in advanced economies suffered setbacks, the report indicated. Weaker momentum in China and India also weighed on regional economies, it added.
According to the report, lower trade surpluses in China have raised the likelihood that the shift of global demand to major surplus economies is finally taking place, but sustainable rebalancing will nonetheless depend on China s successful transition from investment-led to consumption-led growth.
Among ASEAN economies, public investment in infrastructure within appropriate medium-term frameworks would help crowd-in private investment and promote more broad-based growth while safeguarding fiscal sustainability, the report stated.