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Regional outlook
The economic outlook for southeast asia for 2003 and 2004 is cautiously positive. Domestic demand should continue to strengthen over next two years. However, if excess capacity and weak bank lending continue to persist, while progress made in corporate restructuring remains sluggish, then growth prospects may be limited. Furthermore, the ongoing economic revival in the region is extremely fragile owning to several external risks. These risks include a facltering U.S economic recovery, military conflict in the Middle East, rising oil prices, and the prospect of global deflation.
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