Mr Larsen said the economies affected by the Asian crisis had turned around, and the crisis could have improved their long-term prospects by forcing economic reforms. But he added that there were significant risks from global imbalances, and in particular over-dependence on the US.
THE INTERNATIONAL Monetary Fund is likely to raise its forecast for world growth in 1999, according to its deputy director of research. Fleming Larsen, speaking in a personal capacity, said: "It is apparent that our global growth forecast for 1999, which was estimated at 2.3 per cent as recently as ... the end of April, may be too pessimistic. I expect our next projections to show a somewhat higher growth rate."