Domestic demand is seen as holding up reasonably well in most emerging Asian economies
Economic growth in Asia is likely to decline to 6.2 percent this year from 7.4 percent year-on-year, but will rise modestly next year, the International Monetary Fund (IMF) said Friday.
"This markdown reflects lower export growth as the drop in external demand from the United States and Europe affects the region foremost through the trade channel, including the dampening effects on demand of sustained high world oil prices," the IMF said in a report titled Regional Economic Outlook for Asia and Pacific.
In terms of demand components, real export growth in emerging Asia is projected to decline by 4 percentage points in 2008, led by China, the report said.
Domestic demand is seen as holding up reasonably well in most emerging Asian economies, supported by strong momentum, steady consumer and business confidence, and healthy household and bank balance sheets, it added.