Strong growth in Asia seen slowing to 8.2%

Strong growth in Asia seen slowing to 8.2%

TOKYO (AFP): Asian economies should sustain strong but slowing growth next year, reports quoted a Japanese government think tank saying yesterday.

The Institute of Developing Economies said real growth in gross domestic product (GDP) for 10 Asian economies excluding Japan would slow to 8.2 percent in calendar 1996 from an estimated 8.5 percent in 1995, according to reports by Kyodo news agency and Jiji Press.

The institute said while growth would be fed by exports from and investment in the Association of Southeast Asian Nations (ASEAN), it was expected to decline in some countries due to slow exports and tight credit policies.

China was expected to show growth of 10.3 percent from an estimated 10.1 percent this year, it said.

The country was likely to experience inflation of 13.2 percent against 10.9 percent this year, prompting monetary authorities to tighten credit, but exports were seen increasing along with investment in the country.

The four newly-industrialized economies -- Hong Kong, South Korea, Singapore and Taiwan -- should achieve as a group growth of 7.0 percent, down from an estimated 7.7 percent in 1995. Inflation was expected to remain unchanged from the previous year at 4.7 percent in 1996.

Among ASEAN members, Indonesia, Malaysia, the Philippines, Thailand and Vietnam should post real economic growth of 8.0 percent, marginally lower than the 8.1 percent for this year, supported by brisk exports and foreign investment. Inflation would ease slightly from 7.2 percent to 6.7 percent.

The institute said that economic growth in the Philippines would exceed inflation thanks to foreign investment and bullish exports helped by the consolidation of economic infrastructure.