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1.10 In East Asia, sustained domestic consumption
should maintain growth at rates similar to last
year, despite tensions in the Korean peninsula.
Exports from the Southeast Asian region should
stay robust, as stronger demand from China should
partially compensate for the weaker demand from
the developed economies. China is a large and
rapidly growing market that offers many opportunities
to nimble entrepreneurs and companies. India's
economy too has much potential. It is showing
a new dynamism and a more outward orientation,
especially in the southern states.
1.11 Economic cooperation among the ASEAN countries
is gradually deepening, for example through the
ASEAN Free Trade Area (AFTA). ASEAN is also launching
Free Trade Agreement (FTA) negotiations with China
and Japan, and preparing to benefit from an FTA
with India and the Enterprise ASEAN Initiative
with the US. Terrorism is still a problem in Southeast
Asia, but after the Bali bombing, ASEAN countries
are cooperating more closely to combat this threat.
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