IMF says Asian economies will rebound strongly from SARS

IMF says Asian economies will rebound strongly from SARS

Agence-France Presse Singapore

Asia's economy is tipped to rebound firmly after being hit badly by the SARS epidemic, with growth projected to outface the global economy, a top International Monetary Fund official said on Sunday.

"Asia once again is a bright spot in the economic picture," the IMF's Deputy Managing Director Shigemitsu Sugisaki said at the World Economic Forum's (WEF) East Asia summit here.

"Asia is expected to grow at about five percent this year and a little bit higher next year, making it the fastest growing region in the world," he said.

The growth forecast for the world economy this year is slightly above three percent for the year and four percent in 2004, Sugisaki said.

"Timely macroeconomic stimulus and decisive policy actions taken by governments across the region have helped minimize the economic impact from SARS and sustained the pace of economic activity," he said.

"Acceleration in U.S. growth has resulted in renewed export growth across Asia, especially in the semiconductor and other IT (information technology) sectors."

Other business leaders at the three-day summit also voiced confidence the region had shrugged off the worst of the Severe Acute Respiratory Syndrome (SARS) epidemic.

Earlier, WEF Asia Director Frank-Jurgen Richter said in his opening address that the region was set to move ahead after going through a tough period marked by SARS, the Iraq war, terror attacks and the failed trade talks in Cancun, Mexico.

"This idea of a dynamic renewal is very clear after a very difficult year," Richter said.

"But now everything is on the move and Asia is looking ahead with a lot of optimism," he said.