Six Southeast Asia Economies Incl Indonesia to Grow 5.9 Pct Average
http://dervishcom.blogspot.com/2011/11/six-southeast-asia-economies-incl.html
Economic growth in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam is likely to remain robust and reach 5.9% on average by 2016 from an average of 5.0% estimated for this year, as the countries increase investments and spur domestic demand, the Organization for Economic Cooperation and Development said Tuesday.
“The nature of growth is changing towards a more balanced growth in the post-2008 period. The regional (economies) will rely more on domestic demand, thereby increasing economic resilience to external shocks,“ the Paris-based think tank said in a report.
“Indonesia is likely to lead the region's growth thanks to its buoyant domestic demand,“ the OECD said.
OECD forecasts that the six Southeast Asian countries will post an average growth of 5.6% annually in the 2012-2016 period. This is lower than the 6.1% annual average growth recorded in the 2003-2007 period, before the onset of the global economic recession caused by the U.S. subprime mortgage crisis.
The report said that reduced confidence in the U.S. fiscal situation and the ongoing euro-zone debt crisis have “cast a shadow over Asian economies. (The) region needs to be vigilant over economic management against the background of continued global uncertainties and natural disasters.“
OECD recommends that the six countries focus on improving their human capital development, infrastructure, governance, and labour market as key structural policies in the medium term.
OECD also noted the challenges faced by the countries in the face of increased capital inflows into the region. Inflows to the six countries averaged more than $40 billion in the first quarter of 2010, higher than that before the financial crisis and the 1997/8 Asian crisis.
“Policy makers should count on a broad set of policies: monetary and exchange rate policies, macro-prudential policy and 'capital controls'“ to manage such inflows, the OECD said. The report said that such policies should be carefully applied or “may involve potential problems if not used appropriately.“
“The nature of growth is changing towards a more balanced growth in the post-2008 period. The regional (economies) will rely more on domestic demand, thereby increasing economic resilience to external shocks,“ the Paris-based think tank said in a report.
“Indonesia is likely to lead the region's growth thanks to its buoyant domestic demand,“ the OECD said.
OECD forecasts that the six Southeast Asian countries will post an average growth of 5.6% annually in the 2012-2016 period. This is lower than the 6.1% annual average growth recorded in the 2003-2007 period, before the onset of the global economic recession caused by the U.S. subprime mortgage crisis.
The report said that reduced confidence in the U.S. fiscal situation and the ongoing euro-zone debt crisis have “cast a shadow over Asian economies. (The) region needs to be vigilant over economic management against the background of continued global uncertainties and natural disasters.“
OECD recommends that the six countries focus on improving their human capital development, infrastructure, governance, and labour market as key structural policies in the medium term.
OECD also noted the challenges faced by the countries in the face of increased capital inflows into the region. Inflows to the six countries averaged more than $40 billion in the first quarter of 2010, higher than that before the financial crisis and the 1997/8 Asian crisis.
“Policy makers should count on a broad set of policies: monetary and exchange rate policies, macro-prudential policy and 'capital controls'“ to manage such inflows, the OECD said. The report said that such policies should be carefully applied or “may involve potential problems if not used appropriately.“
