Bangkok--15 Dec--UNISBKK
Japan's revival will help the Asia-Pacific region to counteract the effects of a slowing United States economy. This is one of the key messages of this year's Key Economic Developments and Prospects in the Asia-Pacific Region 2007, published by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP).
"The end of deflation has confirmed the recovery of the Japanese economy," notes UNESCAP Executive Secretary Kim Hak-Su, "GDP growth has continued to be robust this year, following on the three previous years of good
performance."
"The Japanese revival has created significant export opportunities for other Asian economies" he says.
According to UNESCAP analysis, net exports of developing Asia economies would improve by 2.3 percentage points from the baseline forecast if Japanese consumption were to grow at the same annual rate as in the late 1980s. Singapore, Indonesia, Thailand and China will gain the most, according to the report.
The report points out that the Japanese revival has also created opportunities for increased foreign direct investment in both China and other Asian economies. So far, China's increasing importance as a destination for direct investment has not had a severe competitive impact on Japanese investment in the rest of the region.
"It is still a challenge for Japanese government to ensure sustainable economic recovery," says the Executive Secretary Kim Hak-Su, "it would depend mainly on the ongoing process of fiscal consolidation to address high domestic debt. Any disruption to fiscal consolidation could negatively affect consumer confidence and spending and, in turn, would threaten the Japanese recovery."
For more information, please contact:
Mr. David Lazarus, Chief
UN Information Services Bangkok
Tel: (66-2) 288-1861, 62, 66; Fax:
(66-2) 288-1052
Email: [email protected]