Asia cushioned despite US economy slowdown

Donald Hanna, Salomon Smith Barney''s chief economist, doubts a repeat of the Asian crisis despite expectations of higher US interest rates.

Asian economies will continue to recover in 2000 even as the US economy slows, reflecting a projected increase in Japan's gross domestic product, which will cushion the region from likely increases in US interest rates, according to Salomon Smith Barney economist Donald Hanna.

Japan is expected to benefit from increased inter-Asian trade as Japanese consumers spend rising incomes on imports from surrounding countries, Hanna told investors at FinanceAsia's fourth Asian Debt Conference in Hong Kong.

Exchange rate policy and current account surpluses should insulate Asia from world interest rate hikes, Hanna says. But such cushioning can only favour countries that are linked to Japan or have strong reform measures and low...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222