The IMF has pointed out that the fast growing economies of Asia face the risk of falling into 'middle-income trap'. It. means that average incomes in these, countries, which till now have been growing rapidly, will stop growing beyond a point-a 'point that is well short of incomes in the developed West. The IMF identifies a number of causes of middle-income trap-none of which is surprising from infrastructure to weak institutions, to less than favourable macroeconomic conditions. But the broad, overall cause, says IMF, is a collapse in the growth of productivity.

Correct Option (A)

The passage explicitly states that the 'middle-income trap' implies average incomes will stop growing rapidly, remaining short of developed Western incomes. It further identifies a "collapse in the growth of productivity" as the broad, overall cause of this trap. Therefore, the inference that once a country reaches the middle-income stage, it runs the risk of falling productivity leading to stagnant incomes, directly aligns with the information presented.

Incorrect Options:

• Option (B): The passage indicates that "fast growing economies of Asia face the risk" of falling into the trap. It describes a potential challenge for specific economies, not a "general characteristic" applicable to all fast-growing economies universally. The term "risk" implies a possibility, not an inevitability or a defining trait.

• Option (C): The passage highlights a risk and its underlying causes, implying that these issues can be addressed. It does not convey a sense of absolute hopelessness for emerging Asian economies to sustain growth momentum. The IMF's identification of causes suggests areas for policy intervention, not an insurmountable barrier.

• Option (D): While the passage identifies a "collapse in the growth of productivity" as the primary cause of the middle-income trap, it frames this as a future risk or a factor contributing to the trap, rather than a definitive statement about the current overall unsatisfactory performance of Asian economies regarding productivity growth. The focus is on the mechanism of the trap, not a general assessment of current performance.