International Monetary Funs has just released the Regional Economic Outlook under the World Economic & Financial Surveys for Asia and Pacific
As per its executive summary for Asia:
• The year 2006 is expected to be another good one for Asia. Growth for the region is forecast at 7 percent, the same as last year but higher than the 6 percent expected at the time of the August Asia-Pacific Regional Economic Outlook.
• Japan's recovery continues apace, with domestic demand strengthening on the back of robust corporate investment and a firming labor market, which is stimulating household incomes and consumption.
• Meanwhile, economies in emerging Asia are benefiting from a surge in external demand for the region's products, particularly electronics, which is expected to continue. And while domestic demand had long been tepid—China and India excepted—it has been gaining traction since early 2005.
• Asian economies could be affected by several global risks:
? High oil prices. Rising oil bills have so far had a moderate effect on Asia's growth, but this may change going forward, especially as concerns about future supply—rather than unexpected increases in demand—have become the prime mover of prices.
? Tightening financial market conditions. Financial markets in the region will likely be tested as globalliquidity
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