Asian economy faces only mild slowdown, IMF official says

"Like the region as a whole, Korea weathered very well the crisis in the summer," Schiff was quoted by AFP as saying in a speech on the economic outlook for South Korea and the region.

Schiff said the outlook for Asia remains positive next year, "although global developments have increased significantly the downside risks."

He said the IMF projects a mild slowdown in Asia in 2008 and a moderate slowdown globally but "there is a sizeable risk of a US recession and a sharper global slowdown."

This would most likely be triggered by extended weakness in the US housing market, spreading to lower consumption and investment and higher unemployment.

The US housing market showed few signs so far of recovery.