Asian economies seeing growth accelerate: IMF

WASHINGTON — Asia's developing economies are seeing acceleration in 2010, led by China's 10 percent growth rate, the IMF forecast Tuesday as the region recovers swiftly from a global downturn.

The emerging economies in the region are set to grow at an average 8.4 percent this year as well as in 2011, compared with the 6.5 percent in 2009, the International Monetary Fund said in its World Economic Outlook update.

China's growth was likely to slow to 9.7 percent next year after posting 10 percent this year and 8.7 percent in 2009, the IMF said.

The Washington-based fund said "key emerging economies in Asia are leading the global recovery" as the region.

India is expected to join China in providing impetus to growth in Asia this year and in 2011.

India should post 7.7 percent growth in 2010 and 7.8 percent next year after managing 5.6 percent last year, according to the IMF projections.

Japan is poised to emerge with a growth of 1.7 percent in 2010 -- unchanged from the last forecast -- after a sharp 5.3 percent contraction last year, the IMF said, adding that Asia's richest economy could accelerate to 2.2 percent next year.

Gross domestic product in China returned to double-digit growth in the fourth quarter of 2009 at 10.7 percent, according to the Chinese authorities last week.

And it surpassed the government's target of eight percent, a level that is seen as crucial to foster job creation and stave off social unrest in China's urbanizing population of 1.3 billion people.

But China's biggest rise in inflation in 13 months underlined the broader challenges of breakneck growth, and came as the IMF and World Bank warned anew that the country could face an economic bubble.

Asia's growth forecast is above that for the world's emerging and developing economies of about six percent in 2010 following a modest two percent last year.

The IMF sees more rapid output in 2010 for the world's developing economies.

"Stronger economic frameworks and swift policy responses have helped many emerging economies to cushion the impact of the unprecedented external shock and quickly re-attract capital flow," it said.