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China tops Asian economy this yr
UNDATED. Dse 22: Ditching communist dogma. China was the star economic performer in Aaia if not the world tn 1992. while Japan alipped in to recession and Australis suffered soaring unemployment. reporta AFP
Hong Kong tagged onto China a surge. Malaysia had its won boom, Singapore recovered from amid slowdown while Taiwan had a strong ex port year
Thailand survived the shooting of anti-government protestors and a bourse scandal while South f^orea was alarmed Its growth rate sank to an 11 -year low.
India watched a Hindu-' Muslim bloodbath and a financial scandal jeopardise economic reforms, power brownouts sank Philippine hopes of recovery and Indonesia wiln essed its first major bank failure
Vietnam quickened the transition from a Marxist to a market economy at the cost of 20 per cent unemployment and was cheered by the partial lifting of the US embargo as UN peacekeepers helped bring rampant inflation into Cambodia.
China bid farewell to three years of austerity as its output surged an estimated 12 per cent after patriarch Deng Xiaoping adopted capitalist methods after he toured wealthy southern provinces tn January ,
The 14th Communist Party congress in October backed Deng s economic shift while maintaining the party's iron
political grip
Hut fears of an overheating economy and Inflation, con cem over Washington renew ing its most favoured nation trading status, budget deficits, the shakiness of fledging stock markets and a money-lostng state sector remain Beijing s challenges in 1993
Japan's popped bubble economy meant the forecast for gross national product growth for the year was
slashed from 3.5 per cent to 1 6 per cent.
Fiscal stimulus. Interest rate cuts and other measures to boost demand and rescue the sagging bourse — which In mid-August was down almost two thirds from its 1989 peak — failed to stop the economy slipping into recession during the year.
An expected record current arvount surplus of 117 billion dollar in 1992 ensured friction
with trading partners, espe dally the United States
Australia, dogged by swelling current account deficits and pct foreign debt soaring to 163 billion dollar, watched unemployment hit a posl-world War II record of IM per cent in November despite fiscal stimulus
Weak growth allowed frifla lion to sink to a 29-year low ol 0.8 per cent the year to September
Hong Kong and Taiwan, meanwhile, grew strongly bui not all was positive in th< British colony. Sino-British clashes over democratic re form before Hong Kongs 1997 handover lo Beijing wiped 20 per rent off the focal stock market from its peak in November and Inflation hov ered just under 10 per cent
Taiwan's dollar soared to a record 24.507 to the greenback in July, thanks to a strong trading performance. The gov ernmenl used 1992 to open its securities markets to the world
India tried the same mar ket-oriented remedy after four decades of semi-socialist Insu latten, but a 1.3 billion dollar stock scandal and nation-wide sectarian violence after Hindus razed a mosque in December shook the reform drive-alarming much-des I red foreign investors.
South Korea predicts output in 19992 ’ will only grow five per cent, compared to 8.4 per cent last year. As part of a liberalisation drive. Seoul partially opened the stock market to foreigners.