Asia's exports forecast to slow

Asia's exports forecast to slow

SINGAPORE: Asia's exports will likely slow further in 2005 due to weaker global demand and currency appreciation, Credit Suisse First Boston said in a report on Friday.

The factors prompted CSFB to cut its forecast for the region's export growth in the first half of 2005 to 10 per cent, down from 15 per cent previously.

With the U.S. dollar continuing to decline and the yen allowed to appreciate, CSFB said in Asia Economics that a wave of appreciation among the non-pegged Asian currencies is expected to ensue.

The investment bank expects the Korean won to appreciate the most, followed by the Taiwanese dollar and Thai baht.

"Weaker-than-expected global demand is a real risk for 2005 now," said CSFB.

South Korea and Taiwan are likely to be hurt most, CSFB said. China and Hong Kong may gain in volume terms.

CSFB forecast electronics and low-margin manufacturers would be the sectors hardest hit.-- DPA