Export-oriented Asian countries will have to turn to domestic consumption to lift growth and offset the impact of an anaemic global economy, analysts said Thursday.
"We are not looking for a strong global economic rebound. We think that's highly unlikely," Robin Bew, a chief economist from the Economist Intelligence Unit, told the opening of a two-day conference on Asia's economic outlook.
"For Asia in particular, exports will be more sluggish. Consequently, it's a story for Asia needing better demand growth (domestically)."
Bew said global growth "will be more sluggish than normal" as cracks began emerging in the United States.
The global outlook was "persistent weak growth... until at least the end of next year," he said, without giving figures.
The US, the world's biggest economy and the prime target for Asian exports, was projected to show 2.4 percent growth in 2002 and 2.8 percent next year, he said.
The raft of US corporate scandals that started with the collapse of energy giant Enron had changed "market perceptions of about the health of the US economy."
Regional economies could also expect scant support from Japan, the biggest economy in Asia, Bew said.
"Like everywhere else in the OECD (Organization for Economic Cooperation and Development), Japan is going to slow," he said.
While the indicators were looking brighter for Japan, Bew said the country was still hurt by structural problems.
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