2009 Set To Be Tough For Asia-pacific Economies

KUALA LUMPUR, Dec 24 (Bernama) -- Asia-Pacific economies are in for a tough 2009 as weak external demand will weigh on the region's export performance and investment.

In a report, 'Asia-Pacific Outlook 2009: Slowing on all cylinders' released here Wednesday, Moody's Economy.com economist, Sherman Chan, said the second half of 2008 was difficult, but 2009 would be even more challenging.

"Aggressive fiscal and monetary policy measures may help prevent a further deterioration in economic conditions, but much of 2009 will feel recession-like in most Asia-Pacific economies," she said.

Chan said no economy was immuned from the US-led downturn.

"Growth is expected to decelerate sharply in the first half of 2009, as all engines run out of steam.

"Those economies already in recession will continue to see harsh conditions through much of the year," she said.

She said Asia-Pacific economies would record sluggish growth at best in 2009 and some outright contraction.

Chan said rising unemployment would depress private consumption.

She said exports would slow considerably in the first half of the year and further fiscal stimulus and monetary policy easing would be implemented.

-- BERNAMA