Domestic demand seen as Asia's buffer<\/p>\n
Asian economies that turned to domestic sectors
\nfor growth achieved impressive results in 2002 amid faltering
\nglobal demand and trade slows, a study said on Monday.<\/p>\n
"Against projections of 3.5 per cent at the start of the year,
\nThailand is now expected to post growth of close to 5 per cent"
\nfor last year, said the report by UOB (United Overseas Bank)
\nTreasury Research.<\/p>\n
South Korea is expected to register 6 per cent growth versus
\nexpectations of 5 per cent last year, it noted.
\nMalaysia and the Philippines are likely to end 2002 with 4 per
\ncent growth, followed by Indonesia at 3.3 per cent.
\nAsian economies have been looking at alternative sources of
\neconomic growth to compensate for the increasing volatility on
\nthe global economic front, the report said.<\/p>\n
South Korea, Thailand and Malaysia "have turned to their domestic
\nsector, through aggressive marketing of credit cards and retail
\nloans," UOB Treasury said.<\/p>\n
With most of these countries recently introducing regulatory
\ncurbs on credit, they still have to depend on better investment
\nspending to fuel economic growth, it added.<\/p>\n
"Although Taiwan is expected to clock growth of 3 per cent last
\nyear, it is largely a result of a low base effect from the
\ncontraction of 1.9 per cent in 2001," the study said.<\/p>\n
Hong Kong remains in the doldrums, although spillover from China
\nis benefitting the economy somewhat, it added.<\/p>\n
Export-driven Singapore managed to avoid a second recession in
\ntwo years with the economy growing 2.2 per cent, expanding by 0.1
\nper cent in the fourth quarter from the third.<\/p>\n
The report cited intra-regional trade as a factor which could
\nkeep the region going despite the global uncertainties.
\nChina was now South Korea and Taiwan's top export destination
\nafter the United States, it said.<\/p>\n
"The question is whether China will be an alternative growth
\nengine for the world," UOB Treasury said, expressing doubt.<\/p>\n
"Although there have been increasing intra-regional trade
\n(especially in exports to China), a significant proportion is
\nstill intermediate goods which are eventually imported to
\nindustrialised countries," the study said. -- dpa<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/domestic-demand-seen-as-asias-buffer-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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