The International Monetary Fund (IMF) has revised its growth forecast for Asia's emerging economies upward from 4.8 per cent to 5.5 per cent. However, it has cautioned that a sustained rebound would hinge on economic recovery in developed countries.
The revised forecast by the Washington-based organisation predicts higher growth for regional giants China and India. In its report released Wednesday it has raised outlook for China by one percentage point to 7.5 while it lifts India's forecast by 0.9 percentage points to 5.4 per cent.
"The upgrade owes to improved prospects in China and India, in part reflecting substantial macroeconomic stimulus, and a faster-than-expected turnaround in capital flows," the IMF said in its report on global growth. "However, the recent acceleration in growth is likely to peter out unless there is a recovery in advanced economies."
The revised outlook comes in the wake of the World Bank's decision last month to raise its growth forecast for China from 6.5 per cent to 7.2 per cent due to its stimulus-driven boom.
The IMF projected its 2010 growth prospects for developing Asian economies from 6.1 per cent to 7 per cent.
Meanwhile, the US administration has said that it is strongly opposed to legislation in the US congress that would seek to restrict its ability to respond to financial crises in future through the IMF.