Pacific Rim Growth

The Pacific Rim is poised for a period of rapid growth and moderate inflation following a two-year downswing, according to a report released by the Pacific Economic Cooperation Council. The update covering 17 of the group’s member countries predicts annual economic growth in the Pacific Basin will increase to 3.6% in 1992 and accelerate to 4.4% in 1993 and to 4.7% by 1994, despite nagging problems in the United States and Japan.

Increase in Real Gross Domestic Poduct/Gross National Product* 1992 1993 Australia 2.7 3.5 Canada 1.7 3.7 Chile 7.5 5.5 China 10.5 9.5 Hong Kong 5.0 5.8 Indonesia 5.9 6.2 Japan 2.7 3.1 Korea 7.4 7.9 Malaysia 8.6 8.0 Mexico 4.5 5.6 New Zealand 2.5 2.8 Peru 0.7 2.5 Philippines 1.8 3.0 Singapore 5.2 6.0 Taiwan 7.0 7.3 Thailand 7.2 7.9 United States 1.7 3.0

*

Rate of inflation 1992 1993 Australia 2.0 3.5 Canada 1.8 2.5 Chile 15.3 11.0 China 5.7 7.2 Hong Kong 9.2 8.5 Indonesia 7.9 7.3 Japan 2.1 1.9 Korea 7.3 7.0 Malaysia 4.8 5.0 Mexico 13.0 10.0 New Zealand 1.1 2.6 Peru 55.0 40.0 Philippines 8.7 7.7 Singapore 2.5 2.3 Taiwan 4.5 5.0 Thailand 5.0 5.3 United States 3.0 3.0

*GDP is the value of goods and services produced within the nation; GNP is the value of goods and services produced by the nation’s companies regardless of whether they are produced domestically.

Source: Pacific Economic Cooperation Council