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Southeast Asian Economic Outlook 2011/12

image of Southeast Asian Economic Outlook 2011/12

This edition of the Southeast Asian Economic Outlook examines the macroeconomic situation, policies and medium-term growth prospects for countries in the region; structural challenges; green growth strategies, policies and institutions; and environmental taxes. It finds that growth for the region will moderate in the near term but solid growth performance will continue until 2016. To sustain this favourable outlook, countries need to meet considerable structural challenges. Green growth offers an alternative growth strategy in the long term.

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Coping with global uncertainty

near-term policy responses

OECD Development Centre

Southeast Asian countries are now grappling with several policy challenges arising from global economic shocks to their economies. Capital inflows into the region have surged and reached historically high levels. While sustained capital inflows are generally beneficial to recipient countries, past experience indicates that temporary surges can adversely affect international competitiveness by pushing real exchange rates to unsustainable levels and increase risks of excesses in domestic financial markets. Rising international commodity prices are posing further policy challenges by adding to domestic inflationary pressures and imposing burdens on poor households.

English

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