E.C.A.F.E. report

Press, Volume CXII, Issue 32861, 9 March 1972, Page 11

E.C.A.F.E. report

(N.Z.P. A.-Reuter—Copyright) BANGKOK, March 6. The Economic Commission for Asia and the Far East reports that many Asian developing countries made impressive increases in their real Gross National Product in 1970.

E.C.A.F.E.’s annual economic survey of Asia and the Far East, released today, adds: "From preliminary evidence available, it is obvious that these increases continued in 1971.” The report will be discussed during a review of economic and social issues at the E.C.A.F.E. conference in Bangkok from March 15 to 27.

The report says: "Of the 23 developing countries considered in the survey, 10 recorded increases in their real Gross National Product in excess of 6 per cent; five recorded increases of between 4 and 6 per cent and eight, increases of 4 per cent or less (in one or two cases, a decrease).” The survey outlines industrial activity over the last two years, and notes that performances were particularly impressive in Indonesia, tile Republic of South Korea, and Malaysia, and it goes on: “Individual achievements were strongly influenced by world trade developments where the manufacturing sectors were export-oriented—as in Hong Kong, Singapore and the Republic of Korea—and by balance-of-payments considerations where industrial output was closely linked to the availability of imported raw materials, semi-proces-sed products, and capital equipment. “In other instances, as in the case of India, it was the low level of investment activity that was the cause of an unsatisfactory level of output."

Reviewing the performances of the three developed economies in the region, Australia, Japan and New Zealand, the survey says: "They share a common problem in an excessive rate of inflation. In Australia and New Zealand, agricultural output is sluggish or declining, although the level of industrial output remains buoyant.

“In Japan, the two major policy issues, other than inflation, are the persistent surplus in the balance of payments and the recession in the level of business activity.”