IMF: Asian economies are vulnerable to sudden global tightening and protectionist shift

IMF: Asian economies are vulnerable to sudden global tightening and protectionist shift

According to the International Monetary Fund, surge prospects for Asian countries are still strong. However, the region appears to be quite vulnerable to sudden tightening of global financial conditions, further market adjustments as well as a shift towards protectionist policies.

In its renewal of regional economic prospects, the IMF actually predicts that Asia is going to tack on by approximately 5.6% in 2018. As for the next year, it’s expected to be about 0.1% higher than the last update in October and it’s going to make approximately two-thirds of global surge.

A moderate improvement in the short-term outlook actually reflects firm and large-scale global surge underpinned by fiscal stimuli in the United States of America.

However, in the medium term, risks tend to head south. Asia still appears to be vulnerable enough to the sudden as well as abrupt tightening of global financial conditions, while a very long period of mild conditions might add more leverage and bring financial vulnerability.

The benefits of globalization are distributed unevenly, and, as was emphasized by recent tariff measures and announcements, the move to a policy oriented to the domestic market happens to be another risk, which could potentially disrupt international trade along with financial markets, as the IMF pointed out.

As for other risks, the International Monetary Fund drew attention to geopolitical tensions, cyber attacks, not to mention climate change. In the long term, the demography of aging can become a considerable brake on the economy, while digitalization is generally anticipated to become a source of uncertainty.

As follows from this, the vast majority of countries should strive to strengthen political buffers. It’s because narrowing the gap in output means that they don’t require further budgetary support, as the Fund stressed.


Latest news

Where is Dogecoin?
Where is Dogecoin?

Did the era of the Dogecoin, the most famous cryptocurrency, come to its end, or it is just a calm before the storm? Let’s find out!

Key Market Driver: FOMC Statement
Key Market Driver: FOMC Statement

The FOMC, a committee within the Federal Reserve, will hold an important meeting and press conference on September 22 at 21:00 MT time (GMT+3).

What will move the markets on September 20-24
What will move the markets on September 20-24

Quadruple witching is gone and now there are no reasons for the market to hinder. From banks statements and economic data to gas storage reading and Fed’s Powell speech – get ready for active trading.

Deposit with your local payment systems

Be on top of your game

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera