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IMF warns trade friction, market turmoil to hurt Asian growth

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Staff Writer | October 12, 2018
China import
Asia   The IMF maintained its forecast that Asia's economy will expand by 5.6 perc

Sustained trade tensions could slash Asia's economic growth by up to 0.9 percentage point in coming years, the International Monetary Fund said, urging policymakers in the region to liberalise markets to offset the fall in export sales.

The IMF also warned in its twice-yearly report on the Asia Pacific region that the market rout seen in emerging economies could worsen if the US Federal Reserve and other major central banks tightened monetary policy more quickly than expected.

"A sudden deterioration of risk appetite, rising trade tensions, and political and policy uncertainty could also lead to tighter financial conditions," the report said.

The IMF maintained its forecast that Asia's economy will expand by 5.6 percent this year but cut its projection for next year to 5.4 percent, down by 0.2 point from April.


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