IMF urges Asian countries to spend more

Most Asian economies are facing a weak recovery next year from a sharp contraction this year and should boost spending to help offset struggling global export demand, the International Monetary Fund said yesterday.

Asia's collective economic growth will likely slow to 1.3 percent this year from 5.1 percent last year, before expanding 4.3 percent in 2010, the IMF said in a report. Excluding China and India, Asian economies will contract 2.9 percent this year and grow 1.6 percent next year, the fund predicted.

Despite some signs that a plunge in exports and manufacturing may have bottomed in recent months, the IMF warned sustained growth won't return to the region before late 2010.