As the global economy looks forward to a stronger growth, the Asia Pacific Region (APR) is expected to reflect the same optimism. This is according to the recent report released by the International Monetary Fund (IMF), emphasizing that the APR remains the most economically dynamic region among its global peers. Moreover, the region is of immense interest among investment institutions, including offshore portfolio management companies like LOM Financial.
The same report reveals that the overall growth in Asia through 2018 and 2019 is forecast at 5.6%. Inflation in the region, on the other hand, is predicted to be subdued. Unsurprisingly, the changes in the U.S. policies will support the region’s investments and exports efforts. Moreover, accommodative financial conditions are projected to support domestic demand.
Since last year’s economic overview of APR, the region has seen an improvement in their near-term prospects while at the same time, neutralizing the risks predicted from the last regional update. However, when it comes to the medium-term prospects, downside risks such as the tightening of the world’s financial conditions, the focus on perfectionist policies, and the global political tensions are still dominating.
The effects of these risks are directly affecting many Asian economies, and thus empowering calls for structural reforms. These reforms can be the most effective countermeasures that will readily address both medium and long-term risks that include population aging and decreased productivity and growth.
Asia is already known as a leader in the digital revolution for many other industries and the said reforms have the power to also boost the economy of the Asia Pacific region especially with the growing potential of digitization and other emerging technologies that are slowly transforming the global economy.