|
Tuesday, September 27, 2005
Jetro sees slower growthJetro sees slower growth
After registering a 5.1 percent growth last year from a year ago, the global economy is expected to take on a smaller growth this year due to the rising prices of oil and the overheating fixed investment in China.
According to a statement from the Japan External Trade Organization (Jetro), the growing account deficit of the United States is another factor that may impede continuous growth of the world economy this year.
Earlier, Standard Chartered Bank’s senior regional economist Mike Moran advised Filipino exporters, especially those whose markets are in Europe and the US, to divert their attention to the local market amid the negative economic developments in the international arena.
Weaken
“The Euro economy is weak already. The US economy is slow this year. It will weaken more by 2006,” he said.
Another economist and business consultant, Peter Wallace, confirmed Moran’s statement, saying the world economy, especially in the West, is slowing down.
He said the country’s electronics industry is affected because the country is dependent on the export of electronics.
But Wallace said the increasing fixed foreign direct investment in China, which currently accounts for 40 percent of the country’s gross domestic product, has resulted in the growth of the Asian economy.
According to the Jetro statement, the year-on-year 5.1 percent growth of the global economy in 2004, was the highest growth rate since 1976. The growth was driven by bouyant domestic demand in the US and continued strong fixed investment in China.
Jetro estimated that global merchandise exports grew 21.2 percent in 2004 to $9.07 trillion, the fastest growth rate in 25 years.
China and the US were the main engines behind this growth, followed by expanded import and export activity in the Association of Southeast Asian Nations and the emerging economies of Brazil, India and Russia. (JBN)
(September 27, 2005 issue)
Write letter to the editor. Click here.
Join the Sun.Star message board. Click here. |
|
[return to top]
[home]
[network page]
|
LOCAL NEWS
BUSINESS
OPINION
SPORTS
LIFESTYLE
FEATURE
SUPERBALITA
WEEKEND
|
