OECD forecast supports India plans for Southeast Asia

Phnom Penh, Nov 20 (IANS) Southeast Asia is emerging resilient from the global economic turmoil and will grow at a "robust" average of 5.5 percent over the next five years, propelled by rising investment and domestic consumption, says the Organization for Economic Cooperation and Development (OECD).

The positive outlook underscores the Indian foreign policy objective of strengthening trade, investment and security ties with the region.

Prime Minister Manmohan Singh Tuesday hitched India's prosperity and security to Southeast Asia and said: "Our vision for this region is rooted in cooperation and integration."

"We have built an impressive agenda for economic cooperation and for addressing some of our common challenges," the prime minister said, addressing the seventh East Asia Summit in the Cambodian capital.

The Paris−based OECD's "Southeast Asian Outlook 2013" report said the European sovereign debt crisis and a slowdown in advanced economies such as the US have had a "limited" impact on the 10 economies of the region.

Brunei, Myanmar, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand and Vietnam, it said, would be insulated by a continuing shift to domestic demand, rather than exports, as the main driver of economic growth.

"Domestic demand growth, and particularly private consumption and investment, will be the main drivers of growth in most Asean countries. Growth will be less reliant on net exports than in the past. The expansion of the middle class is likely to continue to boost domestic demand," said OECD Deputy Secretary−General Rintaro Tamaki at the launch of the Outlook at the Asean Business Summit in Phnom Penh.

The report called for narrowing the development gap in the region focusing on disparities "among" and "within" Southeast Asian countries.

"To maintain economic growth in Southeast Asia and for the population to benefit from this growth, greater efforts are needed to reduce disparities between and within Asean countries. Enhancing productivity through structural policy reforms in particular will be the key to the success of the new development strategies in the region," said Mario Pezzini, director of the OECD Development Centre.

The OECD said a combination of cyclical factors, government policies, and longer−term shifts in economic structure that have supported consumption growth over the past several years are "likely to continue to underpin its growth over the medium term in Southeast Asia, China and India".

Matches

MORE TOP STORIES TODAY

Mumbai Indians vs Kolkata Knight Riders

Mumbai Indians vs Kolkata Knight Riders

Abu Dhabi: Kallis and Pandey's half-centuries help Kolkata set Mumbai 164-run target. More »

Pietersen to miss Delhi's first game

Pietersen to miss Delhi's first game

The former England batsman will have to lead the franchise as he is out of the match against Bangalore with a finger injury. More »

Srinivasan named in fixing report: SC

Srinivasan named in fixing report: SC

The court emphasised that the tainted administrator can no longer work for the BCCI. More »

'If you do the wrong thing it will be found out'

'If you do the wrong thing it will be found out'

'Everyone knows what is right and what is wrong and if you do the wrong thing it will be found out' More »

Why I'm not looking forward to the IPL

Why I'm not looking forward to the IPL

Welcome to another season of a league that many watch but few trust. More »

Mitchell Johnson may quit T20s for Test cricket

Mitchell Johnson may quit T20s for Test cricket

Australia's Mitchell Johnson may quit limited-overs cricket to prolong his test career with an eye on the 2015 Ashes series in England, the fast bowler… More »

There's a lot going on: Fleming

There's a lot going on: Fleming

He experienced anxious moments in the lead-up to the tournament as the courts decided on whether to suspend the franchise, he said, but stressed that the… More »

Latif couldn’t work with tainted players

Latif couldn’t work with tainted players

Former Pakistan cricket captain Rashid Latif said Tuesday he turned down the job of national chief selector because he could not work with ex-players tainted… More »

We are not over-confident: Bailey

We are not over-confident: Bailey

Indian Premier League — George Bailey-led Kings XI Punjab will face Chennai Super Kings on Friday. More »

Big runs expected, with bat and ball

Big runs expected, with bat and ball

Royal Challengers Bangalore: Their main concern, once again, is the fast bowling More »

Taxing issue — BCCI hits roadblock

Taxing issue — BCCI hits roadblock

MoU between BCCI & its units to avoid double taxation delayed after a few decline to share details. More »

Black Caps pick rookie duo for West Indies

Black Caps pick rookie duo for West Indies

New Zealand selectors included two new caps in a 15-man Test squad named Tuesday to tour the West Indies, with injury-hit spinner Dan Vettori's future… More »

The stage is set for IPL-7 to start

The stage is set for IPL-7 to start

The Preview — Defending champions Mumbai Indians take on Kolkata Knight Riders More »

Srinivasan appeals to court to allow BCCI comeback

Srinivasan appeals to court to allow BCCI comeback

He was aggrieved by the allegations against him during the hearing. More »

India: cricket's Brazil

India: cricket's Brazil

They are tough to beat with a big talent base exposed to good facilities. (CYCSPL) More »

Delhi Daredevils say no to gifts

Delhi Daredevils say no to gifts

Franchises are doing their bit to refurbish the image of the tainted league. More »

Klinger on his exit from South Australia

Klinger on his exit from South Australia

Michael Klinger has revealed he felt compelled to leave South Australia after being told he would be only a fringe part of the Redbacks' plans for next season, and disputed the suggestion that he left… More »

India-Pakistan Test series likely in 2015

India-Pakistan Test series likely in 2015

The revival of Indo-Pak Test ties could take place in UAE. More »

Kohli hopes to end RCB trophy drought

Kohli hopes to end RCB trophy drought

'This time around we will hope to go few more steps ahead and actually get that trophy' More »

Gavaskar can help IPL regain glory

Gavaskar can help IPL regain glory

Apart from the foreign players a lot of behind-the-scene activity has taken place in selecting the Indian domestic players. More »

Tendulkar, Ganguly to promote soccer

Tendulkar, Ganguly to promote soccer

Leading Spanish club Atletico Madrid and former cricketers Sachin Tendulkar and Sourav Ganguly are among the owners of eight franchises of a new Indian… More »

This isn’t my first trip to India: Neesham

This isn’t my first trip to India: Neesham

Kiwi all-rounder wants to utilise the India leg to explore the country’s tourist attractions. More »

Ishant wanted to quit ODIs

Ishant wanted to quit ODIs

Says his mother made him change his mind. More »

Supreme Court says no to BCCI’s request

Supreme Court says no to BCCI’s request

Bench refuses to grant access to recordings of Srini and Dhoni’s depositions before Mudgal committee. More »