In the IMF’s update to its World Economic Outlook, average 2013economic growth for five Southeast Asian countries, including Indonesia,Malaysia, the Philippines, Thailand, and Vietnam, is forecast at 5.6percent this year, down from an April estimate of 5.9 percent.
“Downside risks to global growth prospects still dominate: while oldrisks remain, new risks have emerged, including the possibility of alonger growth slowdown in emerging market economies”, the IMF was quotedon July 9.
Key risks cited by the fund are lower potentialgrowth, slowing credit and tighter financial conditions if theanticipated unwinding of the US monetary policy stimulus leads to“sustained capital flow reversals.”
The outlook for many commodity exporting nations has also deteriorated due to lower commodity prices.
The IMF now projects global economic growth to stand at 3.1 percentthis year, down from the 3.3 percent projection made in April.-VNA