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The Regional Economies: A Year of Growth, Stability, and Resilience

For Southeast Asian economies, the year 2006 was marked by vibrant growth, improving economic stability, and an unexpected degree of resilience to external and domestic shocks. In this sense, it can be said that 2006 was one of the best years for the regional economies since the Asian financial crisis erupted in 1997. This article is divided into two main sections. In the first, we take a pan regional approach, reviewing the main factors that drove growth in the region, assessing the sustainability of the improved stability indicators and analysing the reasons for the improved resilience. In the second section, we will review the progress of economies in the core ASEAN region, focusing on these because of the considerably better data available.