Washington-Southeast Asia will face stiffer
export competition from China and likely bear the brunt of any impact in Asia
from a major economic slowdown in the United States, an IMF official said. A
recession in the United States, anticipated by some economists as a result of a
current housing slump and related credit crunch, will obviously lead to a
cutback in exports by Asia's rapidly-growing economies, led by China. Steven
Dunaway, deputy director of the IMF Asia and Pacific department, said there
could be a half to a full percent decline in Asian economic growth. "There will
be much more of an impact in Southeast Asia," which faces direct competition
from China in terms of a number of export products, he said.
Dunaway
said Asia's exporters will have to compete for a piece of "a smaller pie" if US
imports shrïnk. He raised the possibility of China slashing prices to remain
competitive. Cambodia's growth was estimated at 9.5 percent in 2007, reflecting
a slowdown in the export of garments to the U.S. (Source: AFP )
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