The International Monetary Fund has cut its forecast on the economic growth of five nations in Southeast Asia to better reflect faltering growth in the global economy. Monday’s assessment, released in a report by the IMF, was the latest development institution to announce an assessment after the World Bank cut its economic growth forecast for next year.
The IMF cut the economic growth forecast for Indonesia, Malaysia, the Philippines, Thailand and Vietnam, which together are known as the Asean 5, to expand 6.1 percent in 2013, slightly lower that its earlier forecast of 6.2 percent. It cut the global economic outlook for growth to 3.9 percent next year, from its previous forecast of 4.1 percent.
Still, the IMF, which loaned billions of dollars to Thailand and Indonesia during the 1997-98 Asian financial crisis with strict conditions, maintained the growth forecast for the year at 5.4 percent, unchanged from its forecast three months ago.