SE Asia needs less expansionary policies

By: | at 07:00 PM | International Trade  

Southeast Asian economies need to shift towards less expansionary fiscal and monetary policies as they recover from the global economic downturn, the Organisation for Economic Cooperation and Development (OECD) said in a report.

“Greater flexibility of exchange rates combined with more effective management of capital flows will be needed to support the exit measures,” the OECD said in its Southeast Asian Economic Outlook.

Southeast Asian economies are expected to achieve average growth of 6.0 percent per year in 2011-2015, roughly in line with the precrisis level of 6.1 percent, due to strong domestic demand, the report said. It projected 7.3 percent growth in the region for 2010.

The report, which is the first of its kind issued by the OECD, analyses the long-term economic outlook and the policy challenges for the Southeast Asian region.

Following is a table of the OECD’s GDP growth forecasts for the six major ASEAN countries (in percentage changes):

2010 2015 2003-07(ave.) 2011-15 (ave.)
Indonesia 6.1 7.1 5.5 6.6
Malaysia 6.5 5.3 6.0 5.5
Philippines 6.0 4.4 5.7 4.6
Singapore 14.0 4.5 7.5 4.7
Thailand 7.0 5.1 5.6 5.2
Vietnam 6.8 7.2 8.1 7.1
Average 7.3 6.0 6.1 6.0


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