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Economy
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2001-06-29 07:50:00-04
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Higher Risks point to Sharper Decline in Asia
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Five countries in Asia have growth projections scaled back by ADB and British think tank
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A sharper decline in Asian economies is now predicted this year by the Asian Development Bank, lower than previously expected. Basically, until the United States economy shows a pickup later this year or in the first part of next year, Asian economies are expected to drag. The ADB says the London-based economic think tank Consensus Economics Inc has scaled back the 2001 growth projections for five crisis-affected countries to 3.4 % from 3.9% in March. The five countries covered are the Philippines, Thailand, Malaysia, Indonesia and South Korea. The firm also scaled down its 2001 growth projection for the East Asian region to 5.1% from 5.6%. The ADB reports that since the beginning of the year regional Asian stock markets have been largely affected by the volatility of the technology segment of the US stock market as well as weakening regional currencies. These weaknesses have also taken some of the fervor out of reform efforts within countries such as Thailand, the Philippines, Malaysia and Indonesia. President Kim, however, has doggedly pushed ahead in South Korea in spite of a lot of turmoil caused by labor unions. Perhaps he may also get the Nobel Prize for economics to add to his Nobel Peace prize.. Everyone looks forward to the familiar line from the film, 'Being There,' 'growth will come in the Spring,' as the US economy is expected to rebound and the baht, ringgit, won and peso will start flowing freely again.
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