Business

Asia warned over uncertain US policy and rising protectionism

TOKYO: Questions remain over the US' growth outlook due to uncertainty over the new administration's policies, while rising protectionism in advanced economies could affect Asia's prosperity, a senior International Monetary Fund official said.

Mr Mitsuhiro Furusawa, an IMF deputy managing director, told a seminar in Tokyo yesterday that Asia continues to perform strongly and the near-term outlook remains strong, but there are risks.

"Uncertainties could contribute to financial volatility in the coming months," Mr Furusawa said, calling for governments to maintain flexible exchange rates, use macro-prudential policies and keep stronger reserves buffers to cope with capital flow volatility. Global markets became buoyant after Mr Trump's victory in the US presidential election in November, on expectations for his reflationary policy to boost the economy, but investors have grown cautious as his protectionist views cloud global trade. - REUTERS

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