Asian Economies Sustain Rebound amid High Oil Prices

Manila Bulletin, August 1, 2004 | Go to article overview

Asian Economies Sustain Rebound amid High Oil Prices


Byline: EDU H. LOPEZ

Despite the rising world oil prices, the economic growth in East Asia has been sustained since the second half of last year.

Citing the Asia Economic Monitor, the Asian Development Bank (ADB) attributed the sustained growth to the healthier industrialized economies especially the US and Japan, buoyant intra-regional trade, and continued strength in domestic demand around the region as reasons for a projected 7.3 percent gross domestic product (GDP) growth in East Asia for 2004.

East Asia includes the 10 ASEAN member countries, along with the Peoples Republic of China (PRC) and Republic of Korea.

As economic growth in the major industrial countries and the PRC slows to more sustainable levels, East Asias growth is expected to moderate somewhat next year to a still robust 6.5 percent.

"This synchronized upswing in growth, which began last year, will reach its peak this year, close to its post-crisis high of 7.5 percent in 2000, and moderate somewhat in 2005," says Pradumna B. Rana, REMU Director.

East Asias strong first half economic expansion was driven by a combination of a rapid increase in exports and continued strength in domestic demand. …

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