ASEAN resilient to Euro crisis
Continued integration and strong account surpluses make the economies of the ASEAN bloc resilient to the volatile global markets, in particular to the debt crisis in the Euro zone.
According to Prasenjit Kumar Basu, regional head of research and economics of Malaysia’s Maybank, ASEAN had been progressing well over the past quarters and would be able to overcome the unstable global economic environment. The strongest ASEAN members, Indonesia, Malaysia, Thailand, Singapore, Brunei and the Philippines, have recorded large acccount surpluses complimenting the financially weaker countries in the bloc, Myanmar, Laos, Cambodia and Vietnam, Basu said in an interview with Chinese news agency Xinhua.
The surplus countries have excess capital that increasingly flows into ASEAN economies, creating “a symbiotic relationship that is driving ASEAN forward”, Basu said.
Higher foreign direct investment inflow and increasing trade between ASEAN and its most important business partners, Japan, South Korea and China, add to the positive sentiment that the introduction of the ASEAN Economic Community in 2012 will push the bloc’s economic performance further forward.
The International Monetary Fund (IMF) sees the ASEAN 5 — composed of the Philippines, Indonesia, Malaysia, Thailand and Singapore — posting an average growth of 5.2 this year and 5.6 percent in 2013 despite the Euro crisis. The forecast is much better compared with the projections for advanced economies. The IMF sees the eurozone contracting by 0.5 per cent this year and growing by 0.8 per cent next year.
Meanwhile, the Philippines reported a first quarter 2012 GDP growth of 6.4 per cent, which stands out in the ASEAN bloc and was second to China in Asia in the period. Growth was driven by public spending on construction, higher migrant labor remittances, increased consumer spending and higher net exports.
[caption id="attachment_3337" align="alignleft" width="300" caption="Higher consumer spending is one factor pushing ASEAN's economies"][/caption] Continued integration and strong account surpluses make the economies of the ASEAN bloc resilient to the volatile global markets, in particular to the debt crisis in the Euro zone. According to Prasenjit Kumar Basu, regional head of research and economics of Malaysia's Maybank, ASEAN had been progressing well over the past quarters and would be able to overcome the unstable global economic environment. The strongest ASEAN members, Indonesia, Malaysia, Thailand, Singapore, Brunei and the Philippines, have recorded large acccount surpluses complimenting the financially weaker countries in the bloc,...
Continued integration and strong account surpluses make the economies of the ASEAN bloc resilient to the volatile global markets, in particular to the debt crisis in the Euro zone.
According to Prasenjit Kumar Basu, regional head of research and economics of Malaysia’s Maybank, ASEAN had been progressing well over the past quarters and would be able to overcome the unstable global economic environment. The strongest ASEAN members, Indonesia, Malaysia, Thailand, Singapore, Brunei and the Philippines, have recorded large acccount surpluses complimenting the financially weaker countries in the bloc, Myanmar, Laos, Cambodia and Vietnam, Basu said in an interview with Chinese news agency Xinhua.
The surplus countries have excess capital that increasingly flows into ASEAN economies, creating “a symbiotic relationship that is driving ASEAN forward”, Basu said.
Higher foreign direct investment inflow and increasing trade between ASEAN and its most important business partners, Japan, South Korea and China, add to the positive sentiment that the introduction of the ASEAN Economic Community in 2012 will push the bloc’s economic performance further forward.
The International Monetary Fund (IMF) sees the ASEAN 5 — composed of the Philippines, Indonesia, Malaysia, Thailand and Singapore — posting an average growth of 5.2 this year and 5.6 percent in 2013 despite the Euro crisis. The forecast is much better compared with the projections for advanced economies. The IMF sees the eurozone contracting by 0.5 per cent this year and growing by 0.8 per cent next year.
Meanwhile, the Philippines reported a first quarter 2012 GDP growth of 6.4 per cent, which stands out in the ASEAN bloc and was second to China in Asia in the period. Growth was driven by public spending on construction, higher migrant labor remittances, increased consumer spending and higher net exports.
