As the looming threat of euro zone debt crisis overpowering nations across the world, the International Monetary Fund (IMF) has lowered down its expectations for Asia’s economic growth. While the European Union is putting up the best possible options to avert the risk, it has been clear now that there is no clear resolution and with Slovakia’s recent rejection to vote for extending EPSF, hopes of a near resolution have further crashed.

Nonetheless, German Chancellor Merkel assured that things would be fine by Oct 23 when the final vote would be done, as all the European nations would give the final nod. Despite the assertions of the global leader, the negative sentiments widely spread across the world cannot be ignored and perhaps that’s what is pushing the IMF to mold its projection.

So far, euro debt crisis has affected the markets across the world, and even Asia has felt the tremors in the financial markets. It has been told that the IMF has predicted the gross domestic product (GDP) across Asia to grow by
6.3% in 2011, and 6.7% in 2012.

Moreover, the IMF has indicated that there is high possibility that those overseas investors who were optimistic about the Asian growth so far would show their back soon.

"They need to guard against risks to growth but also limit the adverse impact of prolonged easy financial conditions on inflation”, said the IMF, while claiming that Asian policymakers would have to strike a balance between inflation and economic growth.