S.E. Asian economies healing faster than expected, says ADB h

Ulhas Joglekar ulhasj at bom4.vsnl.net.in
Sat Dec 11 18:16:00 PST 1999


11 December 1999 S.E. Asian economies healing faster than expected, says ADB head TOKYO : Southeast Asian economies are rebounding faster than expected, the head of the Asian Development Bank said Friday. "The recovery is exceeding everybody's expectations," said Tadao Chino, president of the bank, which loans money to developing countries in Asia. 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. (AP)
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