Fitch cuts growth forecast for emerging Asia

Fitch Ratings has cut its forecast for emerging Asia's 2012 growth to 6.8 per cent, from 7.4 per cent estimated in
June, reflecting the deterioration in world economic outlook and the lagged impact of policy tightening in some countries.

It said emerging Asian economies were important as its resilience
provided support for high-income Asian countries relative to other advanced economies.

"Many
emerging Asian economies’ prospects are bolstered by scope for a
domestic policy response to any deterioration in global economic
outlook," it said in a research note today.






It said despite the global economic slowdown, the projection for
regional annual average inflation of 5.9 per cent exceeded the 5.6 per
cent expected in June, while next year's inflation forecast was 4.9 per
cent, up from 4.7 per cent estimated in June.

On global
weakening, it said the emerging Asia region as a whole was expected to
have a current account surplus of 1.7 per cent next year, down from 2.2
per cent this year and 3.5 per cent last year.

"This indicates that foreign demand remains an important source of growth in the region," Fitch Ratings said. -- BERNAMA