Asian economies begin signalling recovery: ADB

BANGKOK, July 24 (TNA) – Economies of East Asian countries have already bottomed out and begun to signal a recovery from the recession, but the Thai economy is expected to lag behind in terms of growth next year, according to the Asia Development Bank (ADB) chief economist.

Jong Wha-Lee, head of the ADB Office of Regional Economic Integration, said the Asian economy is on the path of recovery as could be witnessed by an increase in the retail trade and purchase orders from the industrial sector.

He projected the Asian economy would recover in a V-shape pattern and turn to enjoy a positive growth next year, led by a Chinese economy likely to grow 8 per cent due to its successful economic stimulation policy.

Four ASEAN members, including Indonesia, Malaysia, the Philippines and Thailand, would register a different economic growth rate.

The Thai economy is expected to shrink 2 per cent this year and turn to grow 3 per cent next year.

However, the Thai economy is expected to lag behind the economies of Indonesia, Malaysia, and the Philippines which are forecast to expand 5, 4.5, and 3.5 per cent respectively next year because the economy relies mainly on exports for its growth.

He said the Thai economy would rely mainly on local factors for its recovery next year.

Jong allowed that the recovery of the Chinese and Asian economies is insufficient to drive the global economy toward strong and sustainable growth.

The economic resilience of major industrial countries like the United States and Europe would still play a key role in stimulating the world economy because they are major export destinations, he added. (TNA)