Projecting over seven per cent economic growth in Asia this year, the International Monetary Fund on Wednesday said countries in the region will be able to exit stimulus measures earlier than the advanced economies.
The multilateral lending agency asserted that the global economic recovery is led by Asian countries, thanks to the region's robust domestic demand and sound economic framework.
"For the Asia region (excluding Japan [ Images ]), growth is likely to exceed seven per cent this year. This means that many emerging market economies will be able to exit from crisis support measures sooner than advanced economieswith monetary tightening generally preceding fiscal tightening," IMF Chief Dominique Strauss-Kahn said.
In October last year, the agency forecast Asian economies to grow seven per cent in 2010. Speaking at the Asian Financial Forum in Hong Kong, Strauss-Kahn also noted that world economic growth would exceed its previous projection of three per cent this year.
However, the IMF Chief cautioned that there are problems in ensuring sustainable reforms. "...I see two major problems for achieving lasting reform. First, as financial markets and economies recover, there is a real danger that political momentum for reform is lost.
"Second, the financial sector itself seems to be going back to business as usual," he pointed out.