The weakening global economic environment will slow down growth
in Asia and the Pacific, too, this year, but China, India and Japan
are expected to keep up the momentum in the region, says the
Economic and Social Survey of Asia-Pacific 2007.
The three economies contribute more than 60 percent of the
region's GDP and close to 45 percent of its imports, creating
considerable opportunities for the whole region, says the survey,
to be released today by the United Nations Economic and Social
Commission for Asia and the Pacific (UNESCAP).
Developing economies in the region grew at 7.9 percent in 2006,
up from 7.6 percent in 2005. But their economic growth is projected
to slow down to 7.4 percent this year.
The decline is mainly because of the unfavorable external
environment, including the slowing down of the US economy and
falling demand for electronics across the world, says UNESCAP
Executive Secretary Kim Hak-Su in a recorded video on the
commission's website.
The survey shows investment continues to grow in China, while
investment and consumption posted healthy gains in the two special
administrative regions of Hong Kong and Macao.
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The survey, however, warns against several downside risks in the
region, such as a possible oil price hike, abrupt cooling of the US
housing market, vulnerability of the currency, global imbalances
and reversal of the Japanese economy after its recovery.
To ensure better long-term growth in the region, the survey
suggests Asian economies monitor the vulnerability of the currency
and boost domestic demand through private investment.
(China Daily April 19, 2007)
