The growth momentum for Asia will remain strong in 2005 despite some disappointing factors, said Fitch Ratings, an international rating agency on Friday.

Fitch attributed its bright forecast for the region to capital inflows, monetary conditions, and particularly in Southeast Asia, domestic private demand.

The agency also specified the negative factors as higher oil prices, volatility in global electronics markets as well as policy and macroeconomic adjustments in the United States.

It said that the soft-landing of China's economy will result in a slowdown in investment growth, but tightening policies have slowed credit growth to a more sustainable pace and inflation has declined.

As for Japan, prolonged anti-deflationary policies are needed while progress in corporate and financial restructuring may have eased constraints on medium-term growth prospects, according to Fitch.

Dual-headquartered in New York and London, Fitch Ratings is the world's third largest rating agency operating offices and joint ventures in more than 50 locations in the world.

Source: Xinhua