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.