IMF Warns of ‘Stagflationary’ Risks in Asia, Cuts Growth Outlook

IMF Warns of ‘Stagflationary’ Risks in Asia, Cuts Growth Outlook
The International Monetary Fund logo outside the headquarters building during the IMF/World Bank spring meeting in Washington on April 20, 2018. Yuri Gripas/Reuters
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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.