Regional prospects: Firing on all four cylinders?

The general picture’s good and the four biggest economies are simultaneously on a growth path.

The region’s analysts have been busy refining their forecasts for Asian economies in 2006. The consensus appears positive on the whole, with real GDP growth for Asia ex-Japan of 6.5% to 7% projected. That’s a pretty respectable performance at twice global growth.

Rob Subbaraman, regional economist with Lehman Brothers in Tokyo and one of the more bullish analysts around, believes Asia enters 2006 in a cyclical upswing “underpinned by an upturn in global electronics demand, competitive currencies and negative or close to zero real policy interest rates in most countries”.

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