Compared to other parts of the world, whether developed or developing, ASEAN has experienced a remarkably sustained period of economic Growth. Table 10 gives us an idea of how ASEAN’S economic performance over the recent past compares with that of other regions in the world. An important ingredient of this Sustained growth has been the macroeconomic environmnent. Member Countries have pursued macroeconomic policies marked by competitive exchange rates, prudent monetary, policies, low public sector deficits and reasonably open financial markets. This has allowed ASEAN Member Countries to grow without succumbing to inflation, to expand their exports to the world and to become an attractive destination for foreign direct investment (see Table 11).
This growth experience is likely to continue over the near future. The economic recovery in the industrial countries, greater regional stability as a result of the gradual integration of the Indochina states into the global economy, and the successful conclusion of the GATT Uruguay Round all augur well for the region. Some forecasts for 1995 based on the ASEAN Macroeconometric Model developed for the ASEAN Secretariat by the Philippine Institute for Development Studies (PIDS,) give us an indication of this (see Table 12). GDP growth for the region is expected to be at 7% with continuing high-growth performance expected from Malaysia and Thailand. After turning the corner last year, the Philippine economy is expected to show even greater strength in 1995. Exports are expected to grow in double digits again in 1995 with total revenues hitting a quarter of trillion dollars. Inflation is forecasted at a moderate level of 6% although individually, the Philippines and Indonesia may have to struggle a little bit with prices. Finally, foreign direct investment is expected to lilt the $ 15 billion mark in 1995.
October 3rd, 2012
