Asian economy to keep on sprinting ahead

Asian economy to keep on sprinting ahead

MANILA (AFP): Asia-Pacific economies will keep sprinting ahead
of the rest of the world through 1995 with more than seven
percent annual growth, but grave problems loom, the Asian
Development Bank (ADB) said yesterday.

The Manila-based financial institution's "Asian Development
Outlook" said expansion of gross domestic product (GDP) in
developing Asian countries, led by China, would average 7.2
percent in 1994 and 1995, from 7.4 percent the past two years.

Per-capita GDP would rise by close to six percent annually in
Asia during the period -- with Hongkong and Singapore already
well past US$15,000 -- while annual inflation would average seven
percent, the report said.

China, after "unsustainable" 13.4 percent growth in 1993, will
still be Asia's brightest economic star, expanding by a "more
appropriate" 10 percent this year and nine percent in 1995, the
ADB said.

Southeast Asia, piloted by Malaysia and Thailand will grow 7.1
percent this year and 7.5 percent next year. Indonesia will grow
by 6.7 percent and 7 percent.

The newly industrializing "dragons" -- Hongkong, Singapore,
South Korea and Taiwan -- in turn will enjoy about 6.5 percent
growth in 1994-95, from an average 5.6 percent in the previous
two years.

Vietnam, strengthened by market reforms and normalized
relations with the West, will see nine percent and 10 percent
growth, while Southeast Asia's laggard the Philippines will grow
four percent and 5.5 percent.