Asian countries sustain robust growth in first half of 2007

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MANILA, July 10 (Xinhua): Asian countries have sustained robust economic growth in the first half this year, with many countries' growth rates climbing higher than forecast. China and India retained the role of locomotive of Asian economy in the first six months, while ASEAN countries also performed well.
If the momentum of growth goes on in the second half of the year, Asia might well out-perform a 7.6 per cent growth rate forecast earlier this year by the Asian Development Bank for the whole year of 2007.
Despite a slowdown of US economy and sluggish growth in Japan and the European Union, the economies in Asia stayed largely dynamic, which is demonstrated by a sustained increase of exports and domestic consumption, the control of inflation, appreciation of local currencies against the US dollar, mounting foreign currency reserves in central banks of the region, bullish stock markets and strengthening inter-regional economic and trade cooperation.
India's economy grew by 9 per cent in the first quarter of the year, mainly pushed by industrial output which expanded by more than 10 per cent. The country's economy is expected to grow at least 8 per cent this year which would boost wages, consumption and stocks.
Countries of the Association of Southeast Asian Nations (ASEAN) scored well with Singapore's economy growing by 7.6 per cent in the first quarter, faster than the government advance estimate of 7.2 per cent due to strong construction and services sectors. Malaysian economy increased by 5.3 per cent in the first quarter, letting the country to be optimistic about attaining a 6 per cent growth rate target this year. Both public spending and private consumption have countered the negative effects from a drop of electronic products exports.
Both Indonesia and the Philippines have continued moving forward in the first quarter with a 6 per cent and a 6.9 per cent growth respectively. As economists expect Indonesia, the largest economy in Southeast Asia, and the Philippines to be the only two ASEAN countries to enjoy stronger growth this year than last year, exports and agriculture are leading growth in Indonesia and the Philippine economy has been taking a better shape with fiscal reforms bringing more revenues and cutting expenditures.
Thailand has paid all the debts it owed to the International Monetary Fund after the Asian financial crisis 10 years ago and is expecting a 4 to 5 per cent growth this year. Despite widespread drought and diseases for crops and animals, Vietnam scored a strong growth of 8 per cent in the second quarter and 7.9 per cent in the first half of the year, while foreign investment increased by 14 per cent in the first half of the year.
South Korea, one of the most industrialised economy in the region, posted modest growth of 4 per cent in the first quarter.
As the region marked the 10th anniversary of the outbreak of the Asian financial crisis, officials and economists are more confident that Asian countries can fend off better another financial crisis with its huge foreign reserves and closer inter-regional cooperation.
However, the Asian Development Bank (ADB) said in its Asian Development Outlook for 2007 that it is still too early to say that Asia is now less susceptible to the vicissitudes of the international economy.