Asian economies face the policy challenge of managing the sharp rebound in capital inflows, and the related risks of overheating and credit and asset bubbles even as they continue to lead global economic growth, IMF managing director Dominique Strauss-Kahn said.
Strauss-Kahn also cautioned that the downside risks, include those from the recent turmoil in Europe and that Asian policymakers should remain attuned to further possible shocks.
In his opening address to the `Asia 21' high-level conference in Daejeon, Korea, he also highlighted Asia's increasingly important role in global economic policy coordination -especially via the G-20, which Korea is leading and which includes six Asian countries.
"As Asia's economic weight in the world continues to rise, its stake in the economic performance of other countries is rising too," Strauss-Kahn said.
Asia, he said, has emerged as a global economic powerhouse from the recent worldwide financial crisis. "Asia's time has come," he said, adding, "No one can doubt that Asia's economic performance will continue to grow in importance."
"In my view, the macroeconomic, financial and corporate sector reforms put in place over the last decade have played an important role in the region's resilience. So, despite being hit hard initially, Asia was able to bounce back quickly from the global financial crisis," he said.