World Bank might lower economic forecast for Asia
| • | China the lone bright spot among Asian economies |
Bloomberg News Service
BANGKOK — The World Bank said it will probably lower its 2001 economic growth forecasts for Asian countries because of a sharper-than-expected slowdown in U.S. and world growth.
The bank, which plans to release its next official forecasts in September, already cut its growth estimate for almost every Asian country in March. It cited falling exports to the United States and Japan, weak investor confidence and slow progress in reviving ailing banks and companies.
"The U.S. and the world economy have worsened since we made the forecasts in March," said Homi Kharas, the lender's chief economist for East Asia and the Pacific, at a meeting organized by the World Bank, the Asian Development Bank and the United Nations. "The numbers will be lower when we make our next forecasts." He didn't give details.
In March, the World Bank said it expected Thailand's economy to be the worst performer in Asia outside Japan this year, growing 3 percent. It cut its forecast for Korea to 4.5 percent from 6.5 percent, for Taiwan to 4.7 percent from 5.9 percent, and for the Philippines to 3.5 percent to 4.5 percent.
Since then, the region's exports to the U.S. and other key markets have extended their slide and several Asian countries have cut their own growth forecasts. The Thai central bank expects the economy to grow as little as 2.5 percent this year, and the Philippines projects growth as low as 3 percent.
