The International Monetary Fund (IMF) has said in its regional outlook for the Asia Pacific region that countries in the region will register marginally high growth in 2012 but pointed out that the continuing uncertainties in the global economy poses great risk to the region.

The global institution said that Asian countries must be ready to tighten their monetary policies if they notice overheating pressures in the economy as the region sees accelerated growth. According to estimates from the bank, the Asian region is expected to grow at 6 per cent in 2012, which is higher than 5.9 per cent recorded in 2011 but is lower than 6.5 per cent expected for in 2013.

The fund said that the unresolved sovereign debt crisis in the euro zone and possibilities of another financial turmoil poses great risk to the region’s economies. The report also said that countries in the region will be impacted by slower demand from advanced economies and outflow of capital.

Singh, head of the IMF’s Asia and Pacific department said, “Calibrating the right amount of insurance to support stable, non-inflationary growth is the main near-term policy challenge. Policymakers should be ready to shift gears and renew tightening if overheating pressures become evident.”