Asia as a whole has undergone a remarkable recovery in the last two years. However, the slowdown in the rest of the world, as well as political and economic uncertainties within the region, are lowering confidence and future growth prospects. This underlines the need to maintain supporting sound macroeconomic policies and accelerate reforms. But short-term prospects aside, China and the rest of the world also need a stable environment in which to prosper. Let me focus on four key areas.
Growth is also a vital source of financing for targeted social outlays.
Second, the IMF should be the center of competence for the stability of the international financial system . That is why we are forcefully strengthening our work on capital markets and banking systems. We are undertaking a number of initiatives aimed at improving many other institutions, markets, and practices that governments, businesses, and individuals use when they carry out economic and financial activities. And we are rethinking the way we monitor national economies and the global monetary system. One particularly promising initiative underway, jointly with the World Bank, involves thorough health checks of a country's financial sector.