IMF calls Asia for new measures to get trough the collapse

As the International Monetary Fund reported on Wednesday, it called Asia Pacific region to flood nation’s banking systems with liquidity and actively sustain credit growth by using unconventional monetary policy and accommodative fiscal policy. The financial body made its recommendations in the Regional Economic Outlook that was released on Wednesday in Singapore. 

In a move to get over the consequences of the global recession, IMF prompted the measures as part of a "forceful" strategy to last through next year. According to IMF, these measures were necessary to contradict an "astonishing" economic contraction in the poorest nations in the region, excluding China and India, where GDP during the fourth quarter fell a seasonally adjusted 15%. 

The IMF expects Asian economic growth to reach 1.3% this year, and 4.3% the next year. As for the last the Asian Region economy showed 5.1% increase. 

The IMF also called Asian region for a refocusing upon domestic demand and away from exports as a source of economic growth. Thus it noted the key export destinations of the U.S. and Europe consumption possibility to stay weak for years. It advised Asian-Pacific nations to uphold government fiscal stimulus measures through next year, warning that failing to take action could lead to a flare-up of corporate bankruptcies. IMF warned “uncomfortably high levels" of defaults and a downward spiral could become a result of global demand further weakening.