Asian economy to grow 5.7% in 2002, says think tank

Asian Economic News, June 24, 2002

TOKYO, June 19 Kyodo

Nine Asian economies, excluding Japan's, are likely to show combined economic growth of 5.7% in real terms in 2002, up from the initially estimated 4.9%, a Japanese economic think tank said Wednesday.

The Nomura Research Institute said it has revised upward its economic growth forecast as there have been signs of improvement in domestic demand in those economies.

Corporate capital investment has expanded in the economies, prompted by firm exports led by information technology-related products, and improved income situations are providing favorable effects, it said.

The nine economies are China, Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, South Korea, Taiwan and Thailand.

In addition to South Korea and Taiwan, Singapore and Malaysia are likely to post around 5% growth, while China will maintain a high growth of about 7.7%, it said.

The think tank also raised its forecast of the combined growth of the nine economies in 2003 to 5.8% from its previous estimate of 5.7%.

Growth will continue in those economies, but the pace could be affected by the slowdown in the U.S. economy, it added.