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OECD claims Asian economies returning

OECD claims Asian economies returning

(Asia) - Asian economies are on the way back from last year's slowdown although many remain hampered by bad loans in the view of the Organisation for Economic Cooperation and Development (OECD). Economies most closely tied to information technology, including Hong Kong, Singapore, Malaysia and Taiwan, were hit hard in 2001 but are "due for a rebound" although "banking and corporate debt problems" pose the most serious domestic risks to recovery regionally according to the Agency.

These constraints are most "severe" in Indonesia and Thailand, with Malaysia somewhat less so and are rising in Taiwan and the Philippines. With growth forecast to slip to 7.1 percent in China these bad debt issues are crippling many banks' ability to support business.

In the region's technology oriented economies, bruised by a 10 percent overall decline in exports during 2001 and meagre growth to declines in GDP, "signs of a levelling off in exports and a revival in the electronics sector in some countries beginning late last year" suggest the downturns have bottomed out and these economies are due for a rebound.
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