Financial Times FT.com

IMF sees no recovery in Asia until 2010

By John Burton in Singapore

Published: May 6 2009 11:03 | Last updated: May 6 2009 11:03

Asian economies are unlikely to undergo a sustained recovery until mid-2010 and can not rely on China to pull the region out of its current slump, a senior International Monetary Fund official said on Wednesday, casting doubts on a ”green shoots” theory that has helped bolster Asian stock markets recently.

Joshua Felman, assistant director for the IMF’s Asia and Pacific department, said China’s relatively strong performance this year will do little in aiding other Asian countries because most of its growth will come from domestic demand, including public infrastructure projects, that does not benefit other regional economies.

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