China can soften global shocks
Updated: 2011-10-14 07:53
IMF's regional head says nation must help as outlook worsens
TOKYO - China has the scope to shield its economy from global risks and Beijing's response would help soften the effects if Europe's debt woes and faltering US growth escalate into a global crisis, a senior International Monetary Fund (IMF) official said on Thursday.
Anoop Singh, head of the IMF's Asia and Pacific department, suggested it was also the responsibility of the world's second-biggest economy and other export-reliant economies to help rebalance the global economy by strengthening domestic sources of growth.
China "has the scope to respond" should downside risks to the global economy materialize, Singh said. "What's important to notice is that even China's response would only offset a part of the shock. It could not offset the entire shock."
Singh was presenting the IMF's outlook for the Asia-Pacific region, which warned that near-term risks to Asian economies are "decidedly" rising, requiring policymakers to be nimble and prepared to reverse course rapidly.
In its twice-yearly Asia and Pacific Regional Economic Outlook, the IMF warned that risks for the region are "decidedly tilted to the downside".
The IMF expects growth of 6.3 percent in 2011 and 6.7 percent in 2012 for Asia on average, slightly below its April forecast of 6.8 percent in 2011 and 6.9 percent in 2012.