VN, China lead region’s growth
SYDNEY — Asia-Pacific countries are predicted to have the world’s fastest growing economies this year, led by China and Viet Nam.
The International Monetary Fund (IMF) made the forecast in this month’s World Economic Outlook, saying China and Viet Nam will average 7.4 per cent growth this year and predicting even more dynamic figures next year.
The report said despite the Iraq war, the subsequent surge in oil prices and the outbreak of SARS, combining to stifle growth in the region, Asia-Pacific countries were still set to be the world’s fastest growing economies.
Cambodia and Laos are both expected to grow 7.5 per cent next year with South Asia averaging 5.5 per cent this year, led by India at 5.6 per cent.
The IMF forecast the weakest regional growth for such economies as Hong Kong, the Republic of Korea, Singapore and Taiwan, averaging just 2.3 per cent though this is expected to rise to 4.2 per cent next year.
Though predicting strong short-term growth for the region, the IMF advocated greater exchange rate flexibility to reduce the risks of future crises and making domestic growth less dependent on global cycles. — VNS
