ASEAN likely to keep growth momentum in first quarter: OECD

PARIS (Xinhua) – The Association of Southeast Asian Nations (ASEAN) economies are likely to maintain growth momentum in the first quarter of 2011, the Organization for Economic Cooperation and Development (OECD) said Monday.

“In particular, relatively positive developments in Indonesia, the Philippines and Thailand are associated not only with strong export demand but also sound domestic demand and improved business sentiment,” the Paris-based OECD said in a quarterly report.

Thailand posted the highest composite leading indicators at 104.2 points in February with consumption contributing to the strong expansion.

The indicators for another two booming ASEAN member countries, namely Philippines and Indonesia, stood at 101.6 points and 100.8 points respectively.

However, the expected strong economic performance would be shadowed by eventual risks of negative impact of the OECD’s economic uncertainties and inflation pressure due to soaring oil costs.

“ASEAN economies in the first half of 2011 (and beyond) are facing the double policy challenges of tightening interest rate policy to quell inflationary pressures, while avoiding additional capital inflows and maintaining competitiveness,” the OECD said.

In the report, the OECD conclusively warned inflationary pressures are also mounting in China from soaring real estate prices, and in India from rising food prices.