Asia economies set for revival, fallout from Japan limited

Asia economies set for revival, fallout from Japan limited

Agence France-Presse, Singapore

Asian countries outside of Japan could see a revival in their flagging economies this year, sparked largely by a recovery in the United States, an American Express Bank expert said Monday.

Japan's slide into a recession for the third time in a decade is expected to have a limited impact on the region's recovery, the bank's London-based chief economist John Calverley said.

But a pick-up in the world's second biggest economy is always a bonus for Asia though, he said.

"It's only a limited drag I think. If Japan were to pick up, that would be a big plus," said Calverley, who was speaking at an event organized by the American Chamber of Commerce here.

"Unfortunately I don't see that happening. Not until the end of 2002 (at) the earliest," he said.

Calverley said the region will likely see average growth rates of between 2.0 percent and 3.0 percent this year.

Apart from getting a boost in the U.S. recovery, a pick-up in demand in the technology sector will also lift the region whose economies depend heavily on technology-related exports, said Calverley.

"I think Asia ex Japan is going to do much better this year and part of that is to do with technology," he said.

"Part of it is to do with the regional recovery generally. Of course a lot depends on the U.S.," he added.

Calverley said the United States will see an upturn by the second quarter as the series of rate cuts by the Federal Reserve and low oil prices begin to kick in.