Economic Performance
Economic Performance in the First Half of 2007
• Economic growth in emerging East Asia was stronger than expected in the first half of 2007, buoyed by strong consumption and external demand.
• Inflation continued to fall in most ASEAN economies, but started to rise in PRC, Korea, and Singapore.
• Throughout the region, current account surpluses were sustained in the first half of 2007, while capital inflows remained strong.
• Financial markets gained across the region in the first half of the year despite some volatility, with several policy makers increasingly anxious about the risk of a possible equity market bubble.
• Monetary policy responses varied across emerging East Asia—with PRC; Korea; and Taipei,China tightening policy, Malaysia keeping policy rates unchanged, while policy rates in Indonesia, Philippines, and Thailand were lowered.
• Against a background of favorable economic conditions, financial sectors in the region have generally remained resilient,......
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