China, which is rebalancing its economy away from a dependence on manufacturing and toward consumption, is expected to see its economic growth slow to 6.5 percent this year and 6.2 percent in 2017, from 6.9 percent last year, the report said.
"While this transition to slower but more sustainable growth is desirable for both China and the global economy, it is causing changes in the manufacturing sector over the medium-term, as heavy industries, such as steel and shipbuilding, face major consolidation to reduce excess capacity," the IMF said.
But it also noted that not all of the regional spillovers from China's economy are negative. While there are larger costs short-term from exposure to China's slowdown, Asia also reaps medium-term benefits from that greater exposure, the IMF report said.
"While ongoing rebalancing in China will weigh more heavily on Asian countries with higher exposure to China's domestic investment, exposure to China's consumption will provide a buffer and may boost exports of some countries," it said, citing in particular Chinese consumers' interest in higher-quality, high-protein foodstuffs. An increase in outbound Chinese tourists will also benefit countries that attract them, the IMF said.
In the press conference on Tuesday, Rhee said countries such as New Zealand and India, which sell consumption goods, would will likely benefit, while countries such as South Korea or Taiwan that sell intermediate or investment materials, which may need assembly within China, will likely face headwinds.
The multi-lateral lender also expects a marked slowdown in Japan's economic growth ahead. While Japan's GDP is forecast to grow at 0.5 percent this year, in-line with last year, the IMF expects it will contract 0.1 percent in 2017, hit by a widely expected increase in the consumption tax set for next year.
"This forecast does not take into account likely growth-supporting policies to offset the increase," the report noted, but it added "an ageing population and high public debt remain major drags on Japan's long-term growth."
Rhee said in the press conference that the IMF would incorporate Japan's likely introduction of growth-supporting policies into its forecasts once it knew what kind of package the country would use.
He also expressed some concern over Japan's public debt, which exceeds 200 percent of GDP, adding that the country's ability to maintain those debt levels "beats textbook economics," and that it wasn't clear how long that could continue.
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—By CNBC.Com's Leslie Shaffer; Follow her on Twitter @LeslieShaffer1