Asian economies to gain speed next year, report predicts

Asian economies to gain speed next year, report predicts

Deutche Presse-Agentur

Stronger trade flows will perk up Asia-Pacific growth next year, according to projections released in Australia on Wednesday.

The Pacific Economic Co-operation Council (PECC) predicts China, Vietnam and South Korea will have the strongest growth and New Zealand, the United States and Canada the weakest growth.

The PECC report, published in the Australian Financial Review, predicts growth in the Asia Pacific in 2003 will be 3.8 percent, up from 2.8 percent this year.

The biggest turnaround is expected to be in Japan, which is likely to contract by 0.4 percent this year but grow by 2.3 percent in 2003.

The report's authors, the Australian National University's Ross Garnaut and Christopher Findlay, predict Australia's world- beating economy will slow down, partly because of the severe drought.

Australia is forecast to grow by 4.2 percent in 2002 - the fastest rate in the developed world - but slow to 3.9 percent in 2003.

Trade is forecast to grow by over 6 per cent in East Asia, much higher than expected six months ago.

GDP Growth in 2003, PECC projections: China (8.0 percent), Vietnam (7.5 percent), South Korea (5.9 percent), Malaysia (5.5 percent), Indonesia (5.1 percent), Thailand (4.6 percent), Singapore (4.5 percent), Australia (3.9 percent), Hong Kong (3.2 percent), Canada (3.2 percent), United States (2.8 percent) and New Zealand (2.3 percent).