Asean to Remain Vigilant on Economic-Growth Risks, Draft Says
By Shamim Adam
April 3 (Bloomberg) -- Southeast Asian governments will remain
vigilant regarding risks that threaten their economic expansions,
according to a draft statement by the region's finance ministers.
``We remain cautious of the possibilities of an economic slowdown and
resolved to remain vigilant to these risks and to maintain sound
fiscal and monetary policies,'' finance ministers from the 10-member
Association of Southeast Asian Nations said, according to an undated
draft of a communiqu=E9 to be released tomorrow obtained by Bloomberg
News.
Asian economic growth is slowing amid what the International Monetary
Fund yesterday described as the worst financial crisis in the U.S.
since the Great Depression. The Asian Development Bank lowered its
economic growth forecasts for the region as a global slowdown weighs
on ex****ts. The IMF says there is a 25 percent chance of a world
recession.
The Asean finance ministers' statement will be released tomorrow and
its language is subject to change. The region grew 6 percent in 2007,
the statement said, adding that ex****ts and investment were the main
drivers.
``Growth has become more balanced between external and domestic
demand,'' it said.
The ministers, who are meeting today and tomorrow in the Vietnamese
coastal city of Danang, will discuss external challenges to the region
that are a result of ``global imbalances, volatile capital flows and
financial market turbulence.''
Financial System
``Our strengthened financial system continued to exhibit greater
resilience, which in part is reflective of our significant efforts to
further deepen the financial markets in the region,'' the statement
said.
Central bank officials from the regional bloc are also meeting in
Danang this week. A separate draft statement outlining their
discussion points include observations that the Asean economies have
experienced ``limited impact'' from the current financial market
turmoil.
``While the region could face increasing downside risk to the global
outlook, the impact will be partially mitigated by the strong domestic
demand in the Asian region and increased intra- regional trade,'' the
draft of the central bank governors' do***ent showed.
Asean counties are Brunei, Cambodia, Indonesia, Laos, Malaysia,
Myanmar, Philippines, Singa****e, Thailand and Vietnam.
To contact the re****ter on this story: Shamim Adam in Singa****e
sadam2@[EMAIL PROTECTED]
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