Trade Minister, Mark Vaile, today said the East Asian economic rebound this year was better than expected. In Melbourne Mr Vaile released a new report in the "TradeWinds" series (East Asia - Recovery Underway) published by his Department. The report shows that regional recovery was now increasingly broad-based, encompassing not only production and exports but also consumption. "Korea is leading the pack, and is expected to reach pre-crisis levels of GDP this year," Mr Vaile said. "While the output of most other countries in the region remains subdued, further improvement is expected in 2000. Thailand's recovery is considerably weaker and a return to pre-crisis levels of GDP is not expected before 2001. Malaysia could achieve pre-crisis levels of GDP in 2000. The report warns, however, that the region remains susceptible to a sharp downturn in the US economy or a stalling of growth in Japan. Recovery could be also set back by inappropriate domestic policy responses. The domestic reform process, including financial and corporate sector restructuring, continues to pose considerable challenges for regional governments. "The good news is, Australian business now has better investment access in most countries in East Asia than before the crisis - including in areas such as financial services, distribution and manufacturing. It also faces lower trade barriers as a result of tariff cuts, and more transparent and simpler domestic regulations," Mr Vaile said. "Economic improvements in East Asia in particular are beginning to be reflected in Australia's trade performance. Merchandise exports to East Asia in October this year were 4% up on October 1998," Mr Vaile said. Copies of the report can be purchased by contacting Jane Monico in the Department's Market Development Division phone 02 6261 3114, fax 02 6261 3321.
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