The latest OECD Southeast Asian Economic Outlook says the six states that make up the Association of Southeast Asian Nations (ASEAN) – Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam – saw an average growth rate of 5% this year, down from the 7.6% recorded in 2010.
Within this group, Indonesian growth is forecast to rise from 6.1% in 2010 to 6.3% in 2011. However, the other five countries will see growth fall, with Singapore being hit by the largest decline from 14.5% to 5.6%.
ASEAN economic growth is expected to rise to 5.9% by 2016, as emerging Asia shrugs off the effects of global uncertainties and natural disasters to encourage growth through domestic demand and infrastructure investment.
Mario Pezzini, the director of the OECD Development Centre, says: “A new type of economic growth is needed in southeast Asia. Every cloud has a silver lining. The global uncertainty is an opportunity to re-invent growth.”
Yesterday the OECD warned that the UK and the eurozone are at risk of falling into recession again, as the bloc’s debt crisis continues to exert downward pressure on growth.
To receive more relevant articles like this one, why not sign up to our briefings and breaking alerts by clicking here.