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November 22, 2002



Modest Recovery for Asian Economy in 2002

Asian developing economies are likely to make a modest recovery this year, mainly driven by the pickup in the US economy, according to an official of the International Monetary Fund (IMF).

Charles Adam, assistant director for the IMF's Asia-Pacific office here, was quoted by Thursday's Bangkok Post newspaper as saying that the IMF is cautiously optimistic about the near-term Asian economic outlook.

The US economy's improved outlook this year has already benefited Asian developing countries, most of which rely on the U. S. as a major export market, he said.

The recent Argentina crisis has had limited effects on the Asian developing economies, as seen from spreads in the international debt markets, said Adam.

However, he cautioned that the Asian developing economies are still like a four-engine jumbo jet driven by only one engine, the US economy.

On the whole, the Asian developing economies are expected to post a modest recovery this year, with China and India accounting for 60 percent of overall growth, as both countries benefiting from an improved Information Technology (IT) industry and increased openness to global trade, said the official.

He particularly pointed out that the openness of China to the world trade could benefit the Asian economies' intra-regional trade and become an important source of growth.

The official said whether Asian developing economies could take advantage of the improving global economy will depend on domestic policy, mainly structural reforms.

(Xinhua News Agency May 23, 2002)

In This Series
Experts Propose Trade Liberalization, Economic Cooperation in Northeast Asia

Boao Forum Opens; Zhu Predicts Bright Future

Forum Focuses on Asian Economies

China Key to Asia's Growth, Development Bank Reports

World Economy at the Crossroads

References

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