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SINGAPORE: Most experts believe the global economic recovery may be well underway.
But some said the recovery could be affected if measures that were used to boost economies amid the downturn are not unwound slowly.
They believe that global economies could look very different in the aftermath of the global recession and said it's time for new structural reforms to help create sustainable economic growth.
Governments have pumped billions, if not trillions of dollars, to help stimulate growth to soften the blow of the recent global financial crisis.
And while tills may be starting to ring again, some said the business environment remains tough.
Irvin Seah, economist, DBS Group Research, said: "I think Asian economies in particular are facing a dilemma of trying to balance the risk of higher inflation going forward against the risk of slower-than-expected recovery if policy makers pull back their stimulus packages, as well as their loose monetary policy in the next 12 months. I think they will be taking a more gradual scaling back of these measures which will be good for the economy."
Market watchers said the crisis came about because of excesses and imbalances and structural reforms are necessary to re-balance the world economy.
These include structural policy changes to address a prolonged decline in US consumer demand, and shifts in domestic consumption.
Peter A Petri, professor, Brandeis University, said: "The problem now is to ease up on the programmes that were used to fight the crisis and adopt programmes, structural reforms, new engines of growth that help to drive the growth through the recovery and beyond it to give markets confidence that a new growth path is ahead."
Some experts said it will take a few years for Asian economies to return to normal possibly only after 2011. - CNA/vm
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