E. Asian recovery 'encouraging' but concerns remain<\/p>\n
GENEVA (AFP): The pace of East Asian economic recovery
\nfollowing the 1997 financial crisis has been \"encouraging\" but
\nreasons for concern remain, a new United Nations report said.<\/p>\n
Malaysia's positive influence on the region in pursuing
\npolicies to overcome the crisis played a particularly important
\nrole, the report by the UN Conference on Trade and Development
\n(UNCTAD) said.<\/p>\n
Apart from Indonesia, East Asia has seen per capita incomes
\nreturn or go above levels seen before the 1997 crisis, exchange
\nrates strengthen and foreign capital begin to return, the 2000
\nTrade and Development Report said.<\/p>\n
Secretary-General of UNCTAD Rubens Ricupero said the initial
\npolicy response to the crisis was \"unnecessarily severe\" and
\neconomies only bounced back when austerity policies were
\nreversed.<\/p>\n
\"The positive influence on the entire region of the example of
\nMalaysia in pursuing policies based on autonomously set
\nobjectives and priorities cannot be emphasized strongly enough,\"
\nhe said in the report.<\/p>\n
But, warns the report, the recovery has been accompanied by
\nlimited corporate restructuring and supported by highly
\nfavorable world economic conditions which are susceptible to
\nchange.<\/p>\n
Exports are unlikely to continue at their recent pace while
\npublic deficits and debt have been on the rise in most countries
\nseriously hit by the crisis.<\/p>\n
\"Fiscal consolidation needs to wait until private demand takes
\nthe lead in growth,\" the report noted, adding this could be
\ndelayed by persistent unemployment.<\/p>\n
Ricupero also warned against allowing global market forces to
\ndictate future growth and development.<\/p>\n
\"There is a major role for public investment and the
\ninvolvement of a developmental state with new policy agendas,\" he
\nadded.<\/p>\n
The US economy grew by more than four percent last year and
\ncontinued its role as \"white knight\" to the global economy, while
\nthe European Union (EU) failed to match its 1998 growth rate, the
\nreport noted.<\/p>\n
But growth in the EU is generally expected to reach or exceed
\nthree percent this year, \"harboring hopes that EU will soon
\nreplace the United States as the global growth engine\", the
\nreport said.<\/p>\n
The Japanese economy, which picked up last year after a two-
\npercent decrease in 1998, saw an annual growth rate of 0.3
\npercent for 1999, while developing Asian economies grew on
\naverage by more than five percent last year.<\/p>\n
China also benefited from the regional recovery but its seven-
\npercent growth was the slowest in a decade, after the short-term
\neasing of monetary and fiscal policies failed to stimulate
\nprivate consumption.<\/p>\n
Meanwhile, in Africa per capita income stagnated last year
\nafter growth failed to reach the three percent achieved in the
\nprevious two years.<\/p>\n
However, countries with a currency linked to the French franc
\nbenefited from the depreciation of the euro.<\/p>\n
\"After a number of lean years, the economies of Nigeria and
\nSouth Africa appear to have bottomed out. But on the whole,
\nneither the domestic nor the external conditions are yet right
\nfor an African growth revival,\" the report warned.<\/p>\n
Gross Domestic Product (GDP) per capita decreased in Latin
\nAmerica for the first time last year since 1990, but Mexico
\nshowed a \"relatively strong performance\" because of its close
\nties to the US.<\/p>\n
\"Things could have been much worse for the region if Brazil
\nhad not weathered its financial storm surprisingly well,\" it
\nsaid.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/e-asian-recovery-encouraging-but-concerns-remain-1447893297",
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