Asia looks to region for growth in 2001<\/p>\n
HONG KONG (AFP): Asian economies will have to look to regional
\nand domestic demand for growth in 2001 as the U.S. economy slows
\ndown, a bank report said on Friday.<\/p>\n
Credit Suisse First Boston said a continuing rise in United
\nStates electronic inventories and the country's slowing economy
\nwould lead to a sharp deceleration in Asian exports there in
\n2001.<\/p>\n
But continued growth in domestic demand, especially amongst
\nSouth East Asian countries, China and India, and cheap Asian
\ncurrencies would support stronger intra-regional exports, the
\nreport said.<\/p>\n
The bank expects the Asia's economic growth to dip 0.8
\npercentage points to 6.6 percent this year.<\/p>\n
\"We look for a 150 basic points cut in the U.S. federal funds
\nrate this year,\" said Dong Tao, senior regional economist of
\nCredit Suisse First Boston.<\/p>\n
\"That will help Asia in general, particularly Hong Kong,\" he
\nadded.<\/p>\n
The U.S. Federal Reserve on Wednesday surprised markets by
\ncutting the key federal funds interest rate by half a percentage
\npoint to 6.0 percent in the first cut for two years.<\/p>\n
\"Meanwhile, the U.S. slowdown is faster than we previously
\nthought. Asia can survive on U.S. growth as low as 2.0 percent,
\nbut a harder landing scenario would present a difficult situation
\nfor the region,\" said Tao.<\/p>\n
The report also said that China would be one of the least
\naffected Asian countries in a global slowdown, a trough in the
\nelectronics cycle or high oil prices.<\/p>\n
Private consumption boosted by salary hikes and robust stock
\nmarkets should be helpful in allowing China to weather external
\nadversity.<\/p>\n
The bank has an economic growth forecast of 7.8 percent for
\nChina in 2001.<\/p>\n
\"Year 2002 will be a real banner year for China and we
\nestimate GDP (gross domestic product) growth of 9.5 percent,\" Tao
\nsaid.<\/p>\n
This would be based on stronger exports backed by newly-built
\nelectronics production capacity, further rises in private
\nconsumption in an inflationary environment, rapid expansion of
\nthe service sector and World Trade Organization-related foreign
\ndirect investment.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asia-looks-to-region-for-growth-in-2001-1447893297",
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