China, India to continue high growth Asia to lead global recovery

"The International Financial Times India" International Monetary Fund officials said that this year India and China will maintain high growth, despite the challenges of inflation and capital liquidity surplus, but Asia will continue to lead the global economic recovery.　　India and China are expected to have growth rates of 8.8% and 10% respectively. "At the end of 2009, most Asian countries returned to their pre-crisis levels and some even peaked before the crisis," Anoop Singh, director of Asia-Pacific Annot Singh, told reporters in Saturday.　　After the deepest recession in modern global history, we see Asia leading the global recovery. "In fact, in the past year and in the first quarter of 2010, Asia's economy has rebounded very quickly," he said.　　"While the Asian recovery has a variety of models," an increasing number of endogenous economies such as China, India, Indonesia and more outward-looking economies are experiencing a strong turnaround, Mr Singh added.　　Asked whether rising inflation in South Asia is a serious threat to the region's recovery, Mr. Singh said it was not surprising that inflation was starting to rise, as overcapacity in many countries in Asia had begun to shrink.　　"We expect overcapacity in South Asia and India to end this year," he said, noting that rising food and energy prices are a huge boost to high inflation.　　Subbarao, president of the Reserve Bank of India (Duvvuri Duvvuri), replaces India's Finance minister Pranab (Pranab Mukherjee) at the IMF's steering committee.　　"It is estimated that the current real gross domestic product (GDP) is about 7.2%, higher than 6.7% in fiscal year 2008-09," he said.　　The Reserve Bank of India has set the target of real GDP growth for fiscal year 2010-11 to 8%.　　Subbarao said India played an important role in the financial crisis, both to ease the negative impact of the crisis and to ensure a rapid economic recovery.　　"But inflation is worrying," he said. "The inflation that has been driven solely by supply is becoming more and more generalized".　　Given the risk of inflation, the Reserve Bank of India has embarked on a retreat from expansionary monetary policy, while India's central budget has already begun the process of fiscal consolidation by cutting taxes and fiscal deficits in fiscal year 2010-11, he said. In the long run, India's inflation outlook has three major uncertainties, Subbarao said. "First, the outlook for the 2010-11 rainy season has not been clear. Second, the price of crude oil continues to be volatile. Third, there is evidence to suggest that demand-side pressure is increasing.　　"He points out that the financial sector is at the heart of the recent global crisis," the International Monetary and Financial Committee (IMFC) said in a statement: "Strengthening financial regulation, supervision and rebound are important but still unfinished work". "We are in favour of closer collaboration to promote stability in the global financial system to support economic recovery."　　"Subbarao said. Author: Hong Feng compilation