KUALA LUMPUR: Asia-Pacific's economies are set for another positive year in 2011, with credit conditions likely to remain generally supportive, although policy makers face a number of stiff challenges to ensure the region's economic growth, markets, and credit dynamics continue to prosper, said Standard & Poor's Ratings Services.
Controlling inflationary pressure is a major challenge for policy makers in many economies, as labor shortages, capacity constraints, along with rising commodity and food prices push inflation ahead of many central bank comfort ranges, it said in a publication titled "Asia-Pacific Markets Outlook 2011: Managing The Asian Growth Challenge".
In a statement March 16, S&P said analysts, executives, and economists share their views via a series of separate articles on what lies ahead for the Asia-Pacific region's economies, equities markets, and credit conditions.
S&P's head of Asia-Pacific Tom Schiller expects the region to record another year of solid growth in 2011 after 2010 proved that Asia is emerging from the crisis in a strong position, even as the economic picture for Japan following the recent earthquake remains less clear
"But growth presents a unique set of challenges for policy makers, officials, and investors across the Asia-Pacific region,' he said.
Dharmakirti Joshi, chief economist at CRISIL Ltd, a Standard & Poor's company said central banks were likely to continue to raise interest rates to help contain inflation, but policy makers also faced challenges associated with the region's capital inflows, which have the potential to fuel asset bubbles.
Overall, S&P said the region's economies were likely to remain strong in 2011, although growth rates are likely to moderate from 2010 levels in most cases.
S&P's senior credit officer Ian Thompson in his article, titled "Strong Growth Should Counter Asian Credit Challenges In 2011" said that resilient economic conditions and strong domestic demand translate into a fairly robust credit outlook for the region's sovereigns, corporates, financial institutions, and infrastructure groups.
'Still, the region's rebounding economies have created some stresses for 2011.
"We think that policy makers will need to be alert to the various challenges that could impair economic growth, and by extension credit dynamics," said Thompson.
Controlling inflationary pressure is a major challenge for policy makers in many economies, as labor shortages, capacity constraints, along with rising commodity and food prices push inflation ahead of many central bank comfort ranges, it said in a publication titled "Asia-Pacific Markets Outlook 2011: Managing The Asian Growth Challenge".
In a statement March 16, S&P said analysts, executives, and economists share their views via a series of separate articles on what lies ahead for the Asia-Pacific region's economies, equities markets, and credit conditions.
S&P's head of Asia-Pacific Tom Schiller expects the region to record another year of solid growth in 2011 after 2010 proved that Asia is emerging from the crisis in a strong position, even as the economic picture for Japan following the recent earthquake remains less clear
"But growth presents a unique set of challenges for policy makers, officials, and investors across the Asia-Pacific region,' he said.
Dharmakirti Joshi, chief economist at CRISIL Ltd, a Standard & Poor's company said central banks were likely to continue to raise interest rates to help contain inflation, but policy makers also faced challenges associated with the region's capital inflows, which have the potential to fuel asset bubbles.
Overall, S&P said the region's economies were likely to remain strong in 2011, although growth rates are likely to moderate from 2010 levels in most cases.
S&P's senior credit officer Ian Thompson in his article, titled "Strong Growth Should Counter Asian Credit Challenges In 2011" said that resilient economic conditions and strong domestic demand translate into a fairly robust credit outlook for the region's sovereigns, corporates, financial institutions, and infrastructure groups.
'Still, the region's rebounding economies have created some stresses for 2011.
"We think that policy makers will need to be alert to the various challenges that could impair economic growth, and by extension credit dynamics," said Thompson.
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