Southeast Asian economies will grow by 5.5 per cent over the next five years, returning them to “robust” pre-recession figures, according to a new report.
The Organisation for Economic Co-operation (OECD) revealed that members of the Association of Southeast Asian Nations (Asean) have been exhibiting exceptional resilience “in the face of major external shocks”.
Brunei, Burma (Myanmar), Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand and Vietnam will perform higher than other Asian countries over this period, because of changing dynamics.
According to the Southeast Asian Economic Outlook 2013 report, Asean countries’ economies will be protected from outside volatility by domestic demand growth.
In particular, “private consumption and investment will be the main driver” in boosting development and modernisation. As a result of this, Asean economies will be less reliant on exports.
“To maintain economic growth in Southeast Asia and for the population to benefit from this growth, greater efforts are needed to reduce disparities between and within Asean countries,” suggested Mario Pezzini, director of the OECD Development Centre.
Indonesia is expected to lead the way, with the report projecting the country’s economy will grow by 6.4 per cent by 2017.
Considered one of the world’s major emerging economies, it has regained trust with international investors, who have been impressed with some of the financial reforms that have been made, as well as the ambitious plans that have been laid out for infrastructure development.
In contrast, growth in China and India, which have both undergone dramatic transformation over the last ten years, is expected to be much slower than previous levels. That said, an eight per cent increase between 2013 and 2017 is still considered to be significant.
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