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Amid this diverse landscape of country circumstances, policies in the region will have to strike difficult balances, the report says. Better-prepared countries, which were able to apply monetary and fiscal stimulus in the recent recession, will have to consider when and how to proceed with the withdrawal of stimulus. In general, countries should begin this withdrawal on the fiscal rather than the monetary side, the report suggests. Some countries may start experiencing capital inflows, perhaps on a scale that could become problematic. This would speed up the need to remove stimulus and is another reason for reversing fiscal measures before monetary ones. For other countries, the room for stimulus has been almost depleted and should prudently be saved for downside risk scenarios. Countries with the least fiscal policy room will need stronger efforts to rebalance expenditure to protect vulnerable groups.