ASEAN economic recovery slows down in fourth quarter: OECD

PARIS (Xinhua) – Except for the Philippines, major southeastern Asian countries are to register slowing down economic recovery pace in the fourth quarter of this year mainly due to weak trade, the Organization for Economic Cooperation and Development (OECD) said on Monday.

“Overall, the strong economic recovery seen in ASEAN economies in the first half of 2010 is gradually losing momentum,” the Paris-based OECD said in its regular ASEAN Economies report.

According to OECD’s quarterly survey, the Philippines is leading the regional growth with a continuous solid recovery driven by strong exports and an improving business sentiment, but other southeastern Asia members showed slacks momentum.

“Activity appears to be slowing down in Malaysia due to weak trade and also in Singapore, due to weak production activity and retail sales,” the report said, adding “slight signs of slowing” in Indonesia. For the Thai economy, its outlook “is relatively stable supported by solid production activities,” the OECD said.

As to risks and uncertainties weighing on the southeastern Asian economy, the advanced-country club suggested the Asian bloc better cope with negative impact from OECD countries. “Large capital inflows, mainly from OECD countries, and inflationary pressures” are major difficulties for southeastern Asian countries, the report said.