IMF Lifts Asia Pacific Growth Outlook

The International Monetary Fund lifted its growth projection for the Asia Pacific region but cautioned that near-term outlook is clouded with significant uncertainty.

Growth was forecast to accelerate to 5.5 percent in 2017 from 5.3 percent in 2016, the lender said in its Regional Economic Outlook, published on Tuesday. The outlook for 2017 was revised up from 5.4 percent.

In 2018, growth was forecast to be 5.4 percent, unchanged from the projection published in October.

However, the near-term outlook was clouded with significant uncertainty, and risks, on balance, remain slanted to the downside, the Washington-based lender said.

Over the medium term, slower growth in China was expected to be partially offset by an acceleration of growth in India, underpinned by key structural reforms.

Growth in China and Japan was revised upward for 2017 compared to the October 2016 World Economic Outlook, owing mainly to continued policy support and strong recent data.

The lender projected China to expand 6.6 percent this year and 6.2 percent in 2018. Japan's growth was expected to be 1.2 percent in 2017 and 0.6 percent next year.

On the other hand, growth was revised downward in India due to temporary effects from the currency exchange initiative. India's growth was forecast to rise to 7.2 percent this year and 7.7 percent next year.

The IMF said the region needs structural reforms to address its demographic challenges and to boost productivity.

Further, the IMF said adapting to demographic transition in Asia could be especially challenging owing to rapid aging at relatively low per capita income levels. Some countries in Asia are getting old before becoming rich, the lender noted.