Growth in Asia is set to pick up this year driven largely by continued robust domestic demand, leading a three-speed global recovery, the International Monetary Fund said in its Regional Economic Outlook on Monday.

The lender forecasts the region to expand 5.75 percent in 2013. The favorable outlook is however, accompanied by some risks.

Financial imbalances and rising asset prices, fueled by strong credit growth and, easy financing conditions are building in several Asian economies, it said.

Further, the IMF urged monetary policymakers to stand ready to respond 'early and decisively' to shifting risks, although the need and direction for future monetary policy action differs substantially across economies.

RTTNews