IMF sees robust growth for emerging Asian economies

MANILA, Philippines: Emerging Asian economies are expected to post robust growth this year but are advised to boost technology and human capital to avoid falling into the 'middle income trap', the International Monetary Fund (IMF) said.

In its Asia-Pacific economic outlook released last week, the IMF projected emerging Asia, including the Philippines, to grow 7.2 percent this year, before slightly accelerating to 7.4 percent by 2014. An emerging economy falls into a 'middle income trap' if it suffers from 'sustained growth slowdown' after years of fast growth. Emerging Asia also includes China, India, Indonesia, Malaysia, Thailand and Vietnam.

The local economy, in particular, is seen to grow six percent this year and 5.5 percent next year as earlier projected by the IMF in its World Economic Outlook. “A small, gradual pick-up in growth is expected to continue throughout 2013, underpinned by continued robust domestic demand and some modest strengthening in external demand,” the IMF said.