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.