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Continue stimulus packages: IMF tells most Asian nations

business Updated: Oct 04, 2009 21:28 IST

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IMF on Sunday asked most Asian countries to continue with monetary and fiscal stimuli till signs of economic recovery are clear.

The advice by a key IMF official came even as he said global economy is beginning to pull out of recession and Asian giants, India and China, are leading the recovery of developing nations.

"Real GDP in the second quarter surprised mostly on the upside, with an expansion in France, Germany and Japan and a slower pace of contraction esewhere, including in the United States," IMF Director (Asia and Pacific Department) Anoop Singh said at a press conference in Istanbul ahead of Fund-Bank meeting from October six.

"Emerging economies, led by China and India, are turning around even more strongly," he said.

Region-wise, Asia appears set to pull out of the global downturn faster and stronger than any other region, he said, but asked bulk of the nations in the region to continue with stimuli.

"Fiscal and monetary policies (in Asia) should, therefore, continue to provide stimulus," Singh said.

He said the region's central banks generally have the room to maintain an accommodative monetary conditions until there are clear signs of a sustained growth in private demand as pressures from inflation are muted.

However, Singh also pointed out that there is considerable hetergeneity within Asia as there are cases where inflation has now started to turn upwards.