This will imapct Internet stocks."
Japanese bank predicts more pain in 1999 for Asia
Friday, December 4, 1998
BANGFKOK: Asia's recession is expected to stretch into 1999 with U.S. and European economies slowing and regional government finances coming under pressure, the Industrial Bank of Japan (IBJ) said today. "The recession in Asia deepens," IBJ chief economist Shu Tamaru said. "Given the forecast of a slowdown in the U.S. and European economies next year, it would be hard to expect export-led economic recovery in Asia," he told a gathering of the foreign banks' association here, reports AFP.
"Governments will be faced with worsening fiscal positions, due to increased pressures to implement additional fiscal stimulus policy and bank reform," he said. He said that IBJ forecasts for nine key economies in the region, showed seven countries, excluding China and Taiwan, recording an annual decline in gross domestic product (GDP) for this year and next. Leading the declines would be Indonesia, with a contraction this year of a massive 17 per cent, followed by negative GDP growth of five per cent next year.
"In Indonesia, political instability and uncertainty have discouraged foreign investment. The next election in May will be important," he told the bankers' forum. The Malaysian economy is forecast to contract by five per cent this year and one per cent next year. " |
