Southeast Asia's growth forecast underestimated

Southeast Asia's growth forecast underestimated

SINGAPORE: Southeast Asia's economic growth forecast for this year has been underestimated, with the global scenario less gloomy than anticipated, and a soft China slowdown expected, research house Morgan Stanley said in a report over the weekend.

The tsunami disaster inflicted minimal damage on the economic outlook of Indonesia, Thailand and Malaysia, the firm said, and reconstruction prospects are bright.

Morgan Stanley held out the possibility that Indonesia, worst- hit by the killer waves on Dec. 26, may achieve GDP growth of 5 to 5.3 percent for 2005, up from the firm's earlier forecast of 4.5 percent.

The potential for Thailand is 6 to 6.2 percent, up from 5.7 percent previously anticipated. Malaysia may reach 5.3 to 5.8 percent, up from the earlier 4.8 percent forecast. -- DPA