China's rising deflation risk worrisome: IMF regional director

Srinivasan says Asia vulnerable to trade wars due to supply chain dependence

20241107 Krishna Srinivasan

Krishna Srinivasan, director of the IMF's Asia-Pacific department, speaks to Nikkei Asia in Tokyo. (Photo by Kohtaro Igarashi)

TAMAYO MUTO, Nikkei staff writer

TOKYO -- The International Monetary Fund's top Asia-Pacific official told Nikkei Asia that he is concerned about the potential for falling prices in China, the region's biggest economy.

"Deflation risks are rising in China," Krishna Srinivasan, director of the IMF's Asia-Pacific department, said in an interview last week, calling that "a worry" considering the country's recent low inflation rate and weak domestic demand.

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