'Asian recession different than '97'<\/p>\n
Agence France Presse, Hong Kong<\/p>\n
Economic growth in the Asia-Pacific region, excluding China,
\nwill plunge to 1-2 percent this year due to the global slowdown
\nand in the wake of the terrorist attacks on the U.S., the IMF
\nsaid Monday.<\/p>\n
Speaking at the World Economic Forum's three-day East Asia
\nEconomic Summit, International Monetary Fund deputy managing
\ndirector Shigemitsu Sugisaki added the IMF had US$50 billion
\navailable to help countries cope with the slowdown.<\/p>\n
\"Our estimate is, that excluding China, growth in the region
\nis forecast to fall from about 6.5 percent last year down to 1-2
\npercent this year, so something like a five percentage points
\ndecline. That's huge,\" he told delegates attending the forum.<\/p>\n
However, the region would only see a slight recovery in
\neconomic growth to 2-3 percent in 2002, he added.<\/p>\n
The weakest growth would be seen in Singapore, Taiwan and Hong
\nKong while the slowdown in other less open nations, namely
\nPhilippines, Indonesia and Malaysia was expected to be less
\npronounced.<\/p>\n
\"China is the exception in that it will continue to grow
\naround 7 percent,\" he said.<\/p>\n
Sugisaki said although there was limited scope for
\nmacroeconomic policy action in Japan, it \"must now resume its
\nleadership role in Asia.\"<\/p>\n
Japan could achieve this through decisive action to reform the
\nbanking and corporate sectors.<\/p>\n
\"Resolving the debt issues is really the only way in which to
\nrevive the long-term growth prospects,\" he said.<\/p>\n
Although the recovery of East Asian economies was dependent on
\nthe global recovery, it did not mean regional countries did not
\nneed to take any action themselves, he said.<\/p>\n
\"(On the) macroeconomic policy front, those with low inflation
\nand a flexible exchange rate -- Singapore, Thailand and Korea --
\nhave more scope to ease monetary policy than those with a fixed
\nexchanged rate.\"<\/p>\n
He called on governments around the region to refrain from the
\ntemptation of abandoning structural reform programs in light of
\nthe economic slowdown.<\/p>\n
\"In an environment where markets have a low tolerance for weak
\nmarkets, structural reforms will serve to build confidence and
\nwill help the countries in this region distinguish themselves
\nfrom other emerging markets,\" he said.<\/p>\n
He said the IMF had stepped up its surveillance activities on
\ncountries around the region and \"we are also ready to give more
\nfinancial assistance to countries that are trying implement good
\npolicies in the more difficult circumstances.<\/p>\n
\"I can report to you the IMF has comfortable resources to do
\nso.<\/p>\n
The size of the resources available for further assistance is
\nin the order of $50 billion in the near term.<\/p>\n
\"Hopefully, these resources can be used to prevent crisis
\nrather than to manage crisis,\" he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-recession-different-than-97-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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