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Asia to grow faster in 2002, says Jalan

Asia, led by India and China, will likely see higher growth this year and the next, helped by better domestic demand, Reserve Bank of India Governor Bimal Jalan said in Basel, Switzerland, on Sunday.

"The overall growth rate in Asia will increase to about six per cent in 2002 and will be slightly higher in 2003," Jalan told a conference at the Bank for International Settlements, according to a statement issued on Monday by the central bank.

In 2001, the average growth in Asia slowed to 3.7 per cent, from 7.1 the previous year, according to the Asian Development Bank. Jalan based his predictions on expectations that India will grow by around six per cent and China by more than seven per cent, the statement said.

In the year ended March, India's economy grew an estimated 5.4 per cent, while in calendar 2001, China grew 7.3 per cent, making them two of the world's fastest growing economies.

The ADB has also predicted the region will rebound from the 2001 slowdown, aided by a recovery in exports and robust domestic demand.

The ADB said in April, developing economies in Asia will grow at an average of 4.8 per cent in 2002 and 5.8 per cent in 2003, with China, India and South Korea leading the revival.

The general consensus at the seminar was that there were signs of a global recovery although the picture varied from region to region, the RBI statement said.

Jalan said countries that contracted in 2001 could grow modestly in 2002, while the high performers might accelerate.

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