2003 tougher year for Asian exports

2003 tougher year for Asian exports

SINGAPORE: Asian exports will have a more difficult year in
2003 with new orders from the United States expected to weaken,
said Credit Suisse First Boston (CSFB) in a report on Saturday.

The Institute of Supply Management's new orders index eased to
50.4 in July and 49.7 in August, suggesting Asian exports to the
U.S. could be flat early next year after growing 15-25 per cent
year-on-year in the August-December 2002 period, said CSFB
regional economist P.K. Basu.

CSFB cut its 2003 gross domestic product growth forecasts for
several economies in its latest Emerging Markets Quarterly.

Most notable was Taiwan, where the estimate was reduced to 2.9
per cent from 4.2 per cent.

The forecast for Hong Kong's growth next year was lowered to
1.4 per cent from 2 per cent previously, and Singapore's sliced
by 0.3 of a percentage point to 4.4 per cent.

As long as the U.S. slowdown "stops short of an actual
recession or double-dip," domestic demand within Asia should
continue to recover, Basu said. -- DPA