Economies of emerging East Asia will grow 7.5 percent as a group in 2006, drawing strength from a sustained, broad-based economic expansion in major industrial countries that are key export markets for the region, and a rebound in the global information technology industry, according to a new ADB report.
“The region has adjusted well to a challenging first half characterized by high energy costs, persistent inflationary pressures, tighter monetary conditions, and financial volatility,” says Masahiro Kawai, head of ADB's Office of Regional Economic Integration, which produces the Asia Economic Monitor (AEM), available at aric.adb.org
“There was a revival of external demand in the first half of the year and domestic demand is also now strengthening in several economies. Together these factors will help drive growth in the second half.”
2006 will be the third consecutive year of average GDP growth above 7 percent for emerging East Asia, which comprises the 10 ASEAN countries; People's Republic of China (PRC); Hong Kong, China; Republic of Korea (Korea); and Taipei,China.
Together, these economies posted 7.2 percent growth in 2005, and 7.9 percent in 2004. The AEM forecasts 6.9 percent growth for emerging East Asia in 2007 on an anticipated easing of growth in the US, Japan, and PRC.
The outlook for the PRC economy is a key element of the region's prospects. AEM forecasts GDP in the PRC will grow a strong 10.1 percent this year and 9.0 percent in 2007. Importantly for the rest of emerging East Asia, PRC imports are expected to rebound from exceptionally low growth in 2005.
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