Monday, November 13, 2006

ASIAN ECONOMY HEADING FOR SLOWDOWN?

Business Week reports that Asia's regional economy would be deprived by lower economic growth rate primarily due to higher oil prices, slower speed of the U.S. economic growth and quite volatile financial markets. APEC report estimated that the economic growth of Asia's regional economies would consolidate at 4,3 percent in 2007 compared to 5 percent in 2006. The economic growth would partly be lowered because of higher oil prices and higher interest rates. Political instability and major threats of terrorism could put up some damaging impact on the economic growth as well. APEC reported that after the U.S. economy chills out, China will be the alternate source of demand. Thus, it is estimated that Chinese economy will continute to grow at double-digit growth rate. Robustly boosted private consumption could energize Japanese economy, growing 2,2 percent in the next year.

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