IMF Cuts 2002 Growth Forecast for Asian Economies, Sees Risks
By Anindya Mukherjee
quote.bloomberg.com
Washington, April 18 (Bloomberg) -- Asian economies will grow less this year than earlier forecast as rising oil prices and a falling Japanese yen pare gains from a revival in exports, the International Monetary Fund said.
Growth in the region, excluding Japan, will average 5.6 percent this year, the IMF said in its World Economic Outlook, cutting a 5.9 percent forecast it made in October. Still, growth will be higher than last year's 5 percent pace as U.S. demand for semiconductors, disk drives and other goods revives, the IMF said.
Oil prices, which have risen 30 percent this year because of violence in the Middle East, will damp growth, while the shrinking Japanese economy and the yen's 7 percent drop in the past six months -- which makes the rest of Asia's exports less competitive -- will ``add to weakness in the region,'' the IMF said.
The dimmer outlook suggests a rebound in most Asian economies this year won't live up to investors' expectations. Investors have poured money into Indonesian, Thai, Korean, Philippine and Pakistani stocks, putting those countries' benchmark indexes among the world's 10 best performers this year. |
