Singapore, Dec 29: Asia's increasing integration with china should help the region outpace the rest of the world in economic growth next year although the us will remain the key driver, Singapore's DBS bank said. "In 2003, we believe Asia will outperform other emerging markets as well as industrialised countries in growth terms," Southeast Asia's biggest lender said in a year-end report received at the weekend.

Closer integration with giant neighbour China, a faster recovery in information and communication technology exports and better prices for these shipments were cited as additional drivers for the region's economy.

"Interestingly, the hype that we hear on China exporting deflation and hollowing out the region's manufacturing sector is overblown," the bank said.

As china builds its economy by flushing cheap goods to the world, it is also strengthening the purchasing power of its 1.2 billion citizens, which will mean more imports from the rest of the world including Asia, DBS said.
Bureau Report