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Economy
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2000-05-22 14:33:00-04
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UN Report cites Asian Growth
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UN Social Commission Report positive on growth sees need for international, regional mechanism to prevent repeat of Asian crisis
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A report published by the United Nations Economic and Social Commission for Asia and the Pacific yesterday predicts that economic growth throughout the region looks strong in the next few years. The Escap report, published yesterday, forecast gross domestic product growth of 6.2% for developing nations this year in the Asia Pacific region and 6.4% in 2001. The Asia Pacific region is defined as South Asia, Southeast Asia, North and Northeast Asia, Japan and Australasia. The forecast for growth for Japan and Australia and New Zealand was pegged at 1.1% this year and 1.4% in 2001. Risk factors for the region were seen as minimal with the biggest factor being the continued strength of the US market. The rapid development of the Asian region with some of the highest growth rates during the 1980s and early 1990s encouraged a massive influx of capital into the region. This influx produced asset inflation, inefficiencies and dependence on short-tern money. When the capital outflow began the region collapsed. The report complimented the Asian nations on the corporate debt restructuring and bank recapitalization that had gone on in the region and trusted these processes would continue into the future. The report emphasized the need for multinational and international mechanisms to deal with future flights of capital and financial crises. Executive secretary, Adrianus Mooy, expressed concern that so little progress had been made in developing mechanisms to prevent future financial crises.
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