Working to reduce slump

By ELLEN READ

Asia-Pacific nations must work together to reduce the threat of a global economic slowdown following the terrorist attacks on the United States, Prime Minister Helen Clark and WTO Director-General designate Supachai Panitchpakdi said last night.

Speaking at the end of an Asia 2000 forum in Auckland, Helen Clark said she was in the "more optimistic" camp regarding the likely economic fallout. But she said the attacks were likely to put the emphasis back on the need for multilateral cooperation.

Dr Supachai said the foundations of most Asian economies had greatly improved since the 1997 economic crisis but the attacks on the US meant the bottom of the present global downturn was yet to be reached.

But the global lowering of interest rates was an example of the collective action possible.

"[We] need concerted actions to be able to fight against the great chance of sliding into the first recession of the new millennium," he said.

Coordinated macro-economic policies were required. It was also important that the World Trade Organisation met in Qatar in November as scheduled.