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No recession seen in RP, three other Asian Nations






MANILA, Philippines - Economies in Southeast Asia will continue to suffer from the global slump but recession is not likely in four countries, including the Philippines, an international bank said.

In a research note released on Wednesday, Deutsche Bank said it is not expecting a recession in the Philippines, Indonesia, Malaysia or Thailand even if the "collapse in commodity prices and the anticipation of weaker exports should hurt economic growth."

"Financial prudence, deposit guarantees by central banks and the general lack of exuberance in the mass residential property market has left the ASEAN (Association of Southeast Asian Nations) bloc in far better shape today than before the Asian crisis," Deutsche Bank said.

Still, risk aversion continue hitting currencies of smaller emerging markets in Asia, the bank said.

The Philippine peso, for instance, is back to the P49 to a dollar level after appreciating by 18 percent in 2007.

Other risks hounding countries in Southeast Asia include the credit tightening mode in Indonesia, the wider-than-expected budget deficit in Malaysia, and the political uncertainty in Thailand.

"Only the Philippines seems relatively unscathed so far," Deutsche Bank said. - GMANews.TV


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