The Asia Development Bank issued its new 2009 economic forecast.

In the report the organization said the People’s Republic of China is expected to expand by 7% in 2009 on the back of massive fiscal stimulus measures rolled out by the Government, three economies in the subregion – Hong Kong, China; the Republic of Korea; and Taipei,China – are likely to contract as their economies are hit hard by a sharp drop in demand for exports. The China number is a cut from an 8.7% figure in the ADB’s last report.

The analysis also projected that Southeast Asia’s growth is projected to dwindle to just 0.7% in 2009, down from 4.3% in 2008, and the three most export-orientated economies in the subregion – Malaysia, Singapore and Thailand – will also contract, with the most open of these economies, Singapore, likely to shrink by 5%.

Douglas A. McIntyre