Sign up | Log in



Home  >>   Daily News  >>   Indonesia  News  >>   Economy  >>   IMF Warns of Inflation in Red-Hot Asia
NEWS UPDATES Asean Affairs        12  April 2011

IMF Warns of Inflation in Red-Hot Asia

Related Stories

March 9, 2011
Indonesia urges Asean countries to speed up integration

April 8, 2011
Asean finance ministers discuss “Hot Money”

February 2, 2011
Asean economies may overheat

January 26, 2010
IMF raises growth forecast for Asean 5

The International Monetary Fund (IMF) on Monday warned a number of Asian economies were showing signs of overheating and that soaring food and energy prices were threatening to stoke higher inflation.

But in its latest World Economic Outlook, the Fund also lowered its 2011 growth forecast for Japan after last month's enormous earthquake and tsunami, warning of "large uncertainties" over the world's #3 economy.

And the IMF lent its weight to global calls for China -- which last year overtook Japan in economic size -- to allow the yuan to strengthen. The currency was "substantially weaker" than it should be, the report said.

"Signs of overheating are starting to materialize in a number of economies in the Asian region. Continued high growth has meant that some economies in the Asian region are now operating at or above potential," it cautioned.

Powered by China, Asian economies have led the recovery from the world economic crisis but the IMF warned that stellar rates of growth were feeding price pressures.

"The risk that food and energy price increases will start an inflationary spiral is much greater in emerging and developing economies than in advanced economies," it said.

Households in developing economies spend a comparatively larger share of their incomes on food and energy.

The IMF warned that "many emerging market economies will need to tighten policies to lower the risk of a hard landing".

Several countries -- including South Korea, Indonesia and India -- have tightened policy to try to head off huge inflows of foreign capital from investors seeking better returns on their money than in the lagging West.

The IMF said Japan's economy, which was already struggling with a massive debt mountain and plodding growth, would be further hurt by the earthquake and tsunami that struck the northeast on March 11.

It forecast Japan's gross domestic product would grow 1.4 percent in 2011 compared to an earlier forecast of 1.6 percent made before the twin tragedy hit industrial production and supply chains.

Japan grew 3.9 percent in 2010 after contracting 6.3 percent in 2009 as a result of the global financial crisis.

The IMF warned that the full economic impact of Japan's worst post-war disaster had yet to emerge, adding: "There are large uncertainties associated with the 'Tohuku' earthquake."

Tokyo has said the cost of rebuilding could reach as much as 25 trillion yen (US$295 billion).

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    12  April 2011 Subsribe Now !
 • IMF Warns of Inflation in Red-Hot Asia Subcribe: Asean Affairs Global Magazine
• Change comes to Laos village Asean Affairs Premium
• Privatization equals IPOs in Malaysia
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• San Miguel to raise US$850 million
• IMF reduces Asean 5 growth outlook

• Thai central bank reviews policies

• Thai logistics upgrades needed  

• Vietnam needs thousands of English teachers p

Asean Analysis    12  April 2011

Advertise Your Brand

• The other border-Myanmar refugees

Sponsor Our Events

Asean Stock Watch    12  April 2011


• Asean Markets are headed for a mixed day


Global News Impacting Asia    17 November 2010


• Bank of America sees Asian inflation


• Lloyd’s increases insurance push in Malaysia


• Wells Fargo analyst on euro


• Obama’s visit to Asia


ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2020 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand