ASEAN KEY DESTINATIONS
September 26, 2007
ADB sees no risk of US recession
There is no risk of the United States tipping into recession on account of the slump in housing markets and Asian economies should therefore continue to grow robustly, the chief economist of the Asian Development Bank said.
"Our assessment is that the U.S. will not go into recession," Ifzal Ali told an emerging markets seminar on Wednesday.
"If the slowdown spreads to the euro zone and Japan also stays in negative growth territory, then growth in Asia will be lower," he told reporters later.
He said uncertainty about global growth and credit markets remained elevated but the ADB had not changed its forecasts for Asian growth.
In a report earlier this month, the ADB forecast economic growth in Asia excluding Japan would average 8.3 percent in 2007, compared with 8.5 percent last year.
The ADB also revised up its growth forecast for the region in 2008 to 8.2 percent from 7.7 percent but left open the possibility of downward revisions due to any fallout from the slump in the U.S. housing market.
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