Macroeconomic overview – Strong growth

* China

- Annual GDP growth at + 8.0% expected in 2006 – 2008
- Targeted slowdown in specific sectors, especially in the east coastal areas
- Strong external demand
- Continue high level FDI
- Surge in internal consumption, through rising incomes
 
* India

- Annual GDP growth at + 6.0% expected in 2006 – 2008
- Strong growth driven by booming  IT and outsourcing sectors
- Strong consumer and investment demand
- Monsoon still play an important role in agriculture sector and can cause strong impact to key industrial, financial areas

* ASEAN countries

- Annual GDP growth in the range of 4.5 – 5.5 % expected in 2006 – 2008
- Reduction on fuel subsidies put pressure on the economies of Thailand and Indonesia
- Unrest in southern part of Thailand, if worsening, will impact  consumer confidence as well as tourism industry
- Main drivers of growth are coming from robust consumption growth, a strong revival of business investment, a more political stability, inflation remain subdued
- Trade opportunity with growing markets like China, India

* Korea

- Annual GDP growth in the level of 2.5 % expected in 2006 – 2008
- Main driver of economy will still coming from the booming export sector, especially  strong global demand in electronic products from Korean brand
- Fragile recovery in domestic economy is expected

* Taiwan

- Annual GDP growth in the range of 3.6 – 4.3 % expected in 2006 – 2008
- Weaker US dollar has put pressure on export
- Domestic manufacturing sector consisting mainly of SMEs has made only limited progress in restructuring thus delaying the recovery process of corporate spending and hiring, limited any significant growth gain in GDP
- Export sector has aggressively made reform efforts, clamping down excess capacity, strengthening its financial position
- A more balanced growth with support from exports, private consumption and investment

* Australia

- Annual GDP growth in the level of 2.5 % expected in 2006 – 2008
- Property market is cooling off and interest rate begin to edge upwards, damping consumer spending