OECD: Strong recoveries - exports characterise Asian economies

"Domestic demand growth has picked up significantly since the second half of 1999 and is becoming increasingly important to the recoveries," the OECD said.

In addition, strong external demand, particularly from the United States and Asian OECD countries, has contributed significantly to economic growth in the region.

Growth was particularly strong in Malaysia, Singapore and Hong Kong, the report said, and is expected to continue strong for the next two years.

Hong Kong's GDP is expected to grow by 9 per cent in 2000, and then cool off slightly by 2002, to 5.5 per cent growth. Thailand's GDP will expand by 5.6 per cent this year and continue to grow, with a 7 per cent increase forecast for the year 2002.

Even Indonesia, still suffering from weak domestic demand, is expected to record positive year-on-year growth in 2000, its first since 1997. The OECD predicts a 3.7 per cent jump in GDP for Indonesia in 2000, 5.0 per cent for 2001 and an impressive 6.1 per cent for 2002.

According to the OECD report, Malaysia will continue to enjoy strong economic growth, with an 8.5 per cent GDP increase foreseen for this year, and 6.5 per cent for 2002.

Nevertheless, the continued high oil prices and "the heavy private sector debt loads" will slightly dampen growth in some countries.

The OECD report noted that fundamentals in the region are healthier than in previous upturns and business and consumer confidence is improving.

(la/dpa)