The Asian region faces a “stagflationary” outlook, a senior International Monetary Fund (IMF) official warned on Tuesday, citing the Ukraine war, spike in commodity costs, and a slowdown in China as creating significant uncertainty.
While Asia’s trade and financial exposures to Russia and Ukraine are limited, the region’s economies will be affected by the crisis through higher commodity prices and slower growth in European trading partners, said Anne-Marie Gulde-Wolf, acting director of the IMF’s Asia and Pacific Department.
Moreover, she noted that inflation in Asia is also starting to pick up at a time when China’s economic slowdown is adding to pressure on regional growth.
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