The Indonesian economy grew at the fastest annual rate in six years during the last quarter of 2010 and the Indian government forecast for stronger growth this year, raising fresh concerns about overheating emerging economies, according to Bloomberg. On Monday, the Central Bureau of Statistics for Indonesia reported that gross domestic product grew by 6.9% in the three months to December to beat forecasts for 6.3% growth, The gain marked the largest annual jump since 2004 and brought the annual level of economic expansion to 6.1% for 2010, as consumer spending drives growth.

Meanwhile the Central Statistical Organization of India estimated that the economy will grow by 8.6% in the year ending Mar. 31 from a year earlier, which would mark the largest gain in three years. The rapid growth in the region is leading to increasing concern inflation and potentially overheating economies. According to The Wall Street Journal, the International Monetary Fund’s managing director John Lipsky said on Friday that emerging markets need to curb growth to protect the stability of the global economic recovery, saying, “Pretty much everybody’s going to need to tighten monetary policy, reduce budgetary stimulus and continue with the process of structural reforms.” Lipsky warned the emerging economies are running out of excess capacity.

Click here to read the story on Indonesian growth from Bloomberg News.

Click here for coverage of India's growth forecast, also from Bloomberg News.

Click here for coverage of the IMF’s warning from The Wall Street Journal.