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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