Asia-Pacific economies may rebound in 2010: S&P

The Asia-Pacific economies are expected to post positive GDP growth in 2010, according to a new report, "Asia-Pacific Economic Outlook Q4 2009: Exit Strategies And Inflation Are Main Issues For 2010 As Region recovers," published by Standard & Poors. But concerns and challenges remain-inflation is an issue for some while the questions of when and how to exit from expansionary monetary and fiscal policies are critical for all, the report quoted.

The report reviews the quarterly performances of Australia, New Zealand, Japan, China, India, Hong Kong, Singapore, Korea, Taiwan, Indonesia, Malaysia, Philippines, Thailand, and Vietnam.

It also provides an outlook opinion on Asia-Pacific economies based on recent data. Policy focus is gradually shifting from managing the crisis to managing the ongoing recovery. A critical challenge for all economies is how and when to exit from expansionary monetary and fiscal policies in a way that secures recovery. Most countries are likely to begin by exiting monetary easing, then gradually withdraw fiscal stimulus. The report looks at which countries are likely to exit monetary easing first.

Just as Asia-Pacific is leading the world in economic recovery, so too will it lead the exit strategy. In our opinion, the coming year will see all Asia-Pacific economies adopt a tightening stance in one form or the other," the report added.