Information about Asia and the Pacific Asia y el Pacífico
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Country Focus: ASEAN-4

Author(s):
International Monetary Fund. External Relations Dept.
Published Date:
June 2006
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Information about Asia and the Pacific Asia y el Pacífico
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The near-term growth outlook for the ASEAN-4 (Indonesia, Malaysia, Philippines, and Thailand) is favorable, thanks to strong export growth. But sustaining medium-term growth requires reviving domestic demand, especially investment.

Export growth, though slowing, is underpinning continued GDP growth in 2006.

High oil prices have trimmed current account surpluses-except in Malaysia, a net oil exporter …

Reserve buildup has continued, although in Malaysia it temporarily reversed in late 2005 when expectations of a large revaluation waned.

Sources: IMF, World Economic Outlook database; CEIC Data Company Ltd; and IMF staff calculations.

But rising oil prices have pushed up inflation, calling for vigilance in monetary policy.

… while most foreign exchange rates have remained flexible.

To sustain growth, investment will need to be stimulated by strengthening financial systems and improving the business climate.

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