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...
