Global economic conditions were healthy in 2000, despite the volatile stock markets worldwide and higher oil prices. However, after a promising run in the initial part of the year, global growth momentum began to ease as the year drew to a close. The US economy peaked with growth moderating to a more sustainable pace at 5.6%. In Japan, economic recovery petered out to a growth rate of 1.2% after initial momentum in 1999. The European Union held up better with a broad-based expansion of 3.6% on the back of robust domestic demand and buoyant export performance.

Although growth momentum tapered off towards the end of 2000, the external environment was favourable on the whole and most Asian economies reported improved

In Southeast Asia, Singapore maintained its lead in terms of economic performance with a stunning 9.9% growth. Supported by strong export growth and pick-up in domestic demand, Malaysia also grew by a healthy 7.5%. Despite the persisting local political uncertainties and slow progress in corporate debt restructuring, Thailand, Indonesia and Philippines benefited from strong export demand and extended the recovery process to record growth of 4.3%, 4.8% and 3.9% respectively.