SE Asia recovering faster than expected

SE Asia recovering faster than expected

TOKYO (AP): Southeast Asian economies are rebounding faster
than expected, the head of the Asian Development Bank (ADB) said
Friday.

"The recovery is exceeding everybody's expectations," said
Tadao Chino, president of the bank, which loans money to
developing countries in Asia.

South Korea's economy will likely grow 9 percent this year
after contracting 5.8 percent in 1998, he said. Even Indonesia,
beset with violent independence movements in East Timor and Aceh,
will grow 2 percent this year after shrinking 13.2 percent last
year.

Japan's nascent economic recovery has pushed up the value of
the yen, making goods from Southeast Asia comparatively cheaper,
and thus more competitive, in world markets, Chino said.

"Most Asian countries welcome the strong yen but worry that if
it goes too far, it will slow Japan's recovery," Chino said.

A slowdown in the Japanese economy tends to hurt the entire
region because Japan takes in less Asian imports.

The yen has risen 10.9 percent against the U.S. dollar in the
past four months, trading at about 102.5 yen per dollar Friday.

Business leaders have complained that the stronger yen will
make Japanese cars, stereos and other products more expensive
overseas, cutting sales and profits.

Southeast Asian economies sank into their worst recessions in
decades starting in 1997, partly because Japan - one of their
biggest trading partners - was mired in its own recession and
taking in fewer exports from the region.