JETRO predicts E. Asian trade to further stagnate<\/p>\n
TOKYO (DPA): With the currency turmoil hanging over East Asia,
\ntrade in the region \"is expected to further stagnate in 1998\",
\nthe Japan External Trade Organization (JETRO) reported in its
\nannual White Paper on International Trade.<\/p>\n
The growth of exports in East Asia was held below double
\ndigits for the second year in a row to 6.9 percent in 1997.<\/p>\n
Imports showed \"stunted growth of 1.4 percent because of
\nsluggish domestic demand brought about by the currency crisis\",
\nsaid the report, which summarizes the past year's world trade
\nperformance and related trends.<\/p>\n
East Asian economies \"are wrapped up in the problem of
\nrestructuring their financial institutions, making export-led
\nrecovery difficult in the near term. More than one year after the
\ncrisis began, there are no signs of recovery,\" JETRO reported.<\/p>\n
The organization defines East Asia as the region covering
\nChina, Hong Kong, Indonesia, Malaysia, the Philippines,
\nSingapore, South Korea, Taiwan and Thailand.<\/p>\n
According to the report, global trade in goods in 1997 grew
\n9.6 percent in volume from a year earlier, well above year-on-
\nyear growth of 6.2 percent in 1996.<\/p>\n
However in U.S. dollar terms (nominal export value base)
\nglobal trade in 1997 showed a year-on-year increase of only 3.4
\npercent to US$5.46 trillion, down from a 3.9 percent rise in
\n1996.<\/p>\n
The huge gap between volume- and value-based growth rates is
\ntraced to the U.S. dollar's strong gains against other
\ncurrencies, the report said.<\/p>\n
In 1997, Japan's exports to other East Asian countries slipped
\n1.9 percent, compared with a 6.6 percent increase for the United
\nStates and 3.8 percent growth for the European Union.<\/p>\n
During the first half of 1998, Japan's trade with the region
\nplummeted, with exports down 22.5 percent from the same period
\nlast year and imports down 17.7 percent, JETRO said.<\/p>\n
To help stabilize the region's economies at an early date,
\nJapan should resuscitate its economy and take an active role in
\nthe creation of new rules for the financial system and more
\nsupporting industries.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jetro-predicts-e-asian-trade-to-further-stagnate-1447893297",
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