The World Bank said policy makers in Asia’s emerging economies have room to provide more fiscal stimulus as China's slowdown drags the region’s growth to an estimated 11-year low in 2012.
Growth in developing East Asia, which excludes Japan and India, will probably ease to 7.2% from 8.3% in 2011, the Washington-based lender said in a report on Monday. That is the slowest pace since 2001, according to World Bank data, and lower than a forecast in May of 7.6%.
The International Monetary Fund is set to reduce its global forecast for this year tomorrow at an annual meeting in Tokyo where officials will tackle a slowdown triggered by Europe's sovereign-debt crisis. Central banks are stepping up efforts to protect the worldwide recovery, with the United States. expanding monetary easing, the Bank of Japan boosting its asset purchases and the Bank of Korea forecast to cut interest rates this week.
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