Information about Asia and the Pacific Asia y el Pacífico
Journal Issue

Country Focus: ASEAN-4

International Monetary Fund. External Relations Dept.
Published Date:
June 2006
  • ShareShare
Information about Asia and the Pacific Asia y el Pacífico
Show Summary Details

The near-term growth outlook for the ASEAN-4 (Indonesia, Malaysia, Philippines, and Thailand) is favorable, thanks to strong export growth. But sustaining medium-term growth requires reviving domestic demand, especially investment.

Export growth, though slowing, is underpinning continued GDP growth in 2006.

High oil prices have trimmed current account surpluses-except in Malaysia, a net oil exporter …

Reserve buildup has continued, although in Malaysia it temporarily reversed in late 2005 when expectations of a large revaluation waned.

Sources: IMF, World Economic Outlook database; CEIC Data Company Ltd; and IMF staff calculations.

But rising oil prices have pushed up inflation, calling for vigilance in monetary policy.

… while most foreign exchange rates have remained flexible.

To sustain growth, investment will need to be stimulated by strengthening financial systems and improving the business climate.

Other Resources Citing This Publication