Asia's recovery from financial crisis encouraging

Asia's recovery from the regional financial crisis in 1997 has been encouraging and faster than expected but incomes and living standards still have a long way to go to reach pre-crisis levels, according to the first Asia Recovery Report (ARR) fo the Asian Development Bank (ADB).

The same report said that the countries most affected by the financial crisis that hit the region in July 1997 have been recovering at differing paces since late 1998 or early 1999.

According to the report, the Republic of Korea has fared the best, posting a gross domestic product (GDP) growth of 10.2 percent for 1999. The figure for Malaysia is 5.4 percent, while Thailand grew by four percent and the Philippines by 3.2 percent. Indonesia's growth was positive but slow.

The report said by end-1999, Korea's GDP per capita exceeded its previous peak. The Philippines, which had the least ground to make up, may regain or exceed its most recent peak by the end of 2000. malaysia may take another two years, with full recovery of lost income taking even longer in Thailand and Indonesia.

"What has consistently set the economies of the region apart from others is their capacity for recovery," it said. "In no small part, this has been due to the resilience of their economic structures and the pragmatic policies of their governments. These factors also play a part in explaining the ongoing recovery."

The recovery, the report said, is expected to be consolidated and strengthened in 2000, driven mainly by domestic demand and favorable conditions in the global economy. "Growth is expected to a accelerate in Indonesia, Malaysia, Philippines and Thailand, although the Republic of Korea could slow slightly to six to seven percent, after its pronounced recovery in 1999.