"Four Asian Pacific economies last week provided fresh signals that the global economy is showing signs of recovering. Japan revised upward its first-quarter gross domestic production while Australia reported better-than-exported unemployment figures. Pointing to positive signs in their economies, Korea and New Zealand left interest rates unchanged.

The positive signs contrasted with news from China on Thursday that the decline in exports and imports accelerated in May. Exports fell 26.4 percent from a year earlier. Imports fell 25.2 percent, after a 23 percent drop the previous month, but economists said imports and exports had stabilized."

"Indonesia officially opened on Wednesday its longest bridge, one of the few major infrastructure projects to be completed in Southeast Asia's biggest economy since the crisis of the late 1990s. The 5.4-km Suramadu bridge, which connects the islands of Java and Madura, cost about $450 million to build with about half the funds loaned from China. The bridge is the first to link two of Indonesia's bigger islands.

The government of President Yudhoyono, who is seeking a second term in elections in July, has been struggling to push forward plans to overhaul Indonesia's poor network of roads, ports, airports, power supply and other infrastructure. The shoddy state of Indonesia's infrastructure is considered a key impediment to attracting more foreign investment. A 2008 business survey found that companies felt poor roads and unreliable electricity were the top constraints for doing business in Indonesia."

"Commercial trucks from Thailand and Vietnam are able to enter each others' territory for the first time to deliver and pick up goods following a formal exchange of traffic rights and introduction of a regional customs transit system among the two countries and Laos. Overland shipments between Thailand and Vietnam along the East-West Economic Corridor can now proceed directly to their final destination. Shipments previously needed to be unloaded and re-loaded in Lao territory.

The latest initiatives, in tandem with recently-implemented single-window and single-stop border inspections, will sharply reduce overland transport time and boost trade and economic development. They are also expected to further reduce transport costs, producing even more dramatic increases in inter-regional trade volumes."

"A new study has identified four constraints, namely weak governance, inadequate infrastructure, poor industrial relations and inability to address market failure as impeding Nepal's private investment and growth. Both public and private investments in infrastructure have been low. Investment levels in infrastructure are well below the estimated annual investment needs at 6-7 percent of GDP for South Asian countries.

During 1990-2007, government spending on electricity, gas and water declined by 58, 49 and 32 percent respectively. Lack of reliable electricity supply, higher power tariff rates, inadequate and unreliable transport network and poorly maintained irrigation infrastructure are hampering growth. The report also mentioned that economic growth has failed to benefit the poor, disadvantaged and excluded."

"Chinese provincial governments have decided the best way to combat the fallout of the financial crisis was to keep closer cooperation and seek growth opportunities as an integrated whole. It was also in line with the central government's policy to boost domestic demand. The provincial governments called for the expansion of rail and road networks and sealed agreements to strengthen cooperation in finance and tourism sectors.

As part of the strategic plan to revive regional economies and optimize economic structure, Guangdong pledged to accelerate transfer of labor-intensive and processing industries to the central and western part of China. China's State Council also approved a plan to build the eastern Jiangsu province into a transport hub and a coastal industrial base."

"In Cambodia, 40 percent of all children aged between 7-17 years are engaged in some form of child labor -- work that is defined as undesirable for children or potentially injurious to their wellbeing. While Cambodia has enjoyed a period of economic growth during the last ten years, poverty remains widespread, and many families must supplement their household income through the earnings of their children. The global financial crisis has exacerbated the problem with even more families forced to rely on earnings from their children.

Over one-third of families are still forced to survive on less than one dollar a day, and most children in Cambodia suffer some level of malnutrition, enough to cause at least moderate stunting of their growth. Improved economic conditions have also created greater inequalities in society -- widening the gap between the rich and poor."

"While Indonesia's first quarter GDP data is rather weak, it appears that the economy will not deteriorate further. In fact, there are early indications that it will soon start to pick up its pace again. Some economists have predicted that only three other countries besides Indonesia will post positive economic growth this year (China, India and Vietnam).

This upbeat prognosis will boost investor sentiment, boosting Indonesia's attractiveness as an investment destination relative to some neighboring countries whose economies are in disarray. The still respectable GDP growth in the first quarter of 2009 mainly stemmed from higher household spending which grew an impressive 5.8 percent, its briskest growth pace in the last nine years."

"Pakistan unveiled a consolidated budget of Rs2.897 trillion for 2009-10 on Saturday with a drastic cut in subsidy on electricity and focus on short-term relief for inflation- and conflict-hit people. Of the 4.9 percent budget deficit, 1.5 percent is planned to be met from external resources, while the rest will be met from additional taxation and internal sources.

Economic experts say it is a highly risky budget as no one is 100 percent sure that the money would actually come from the countries who have pledged it. At the time of earthquake, friendly countries had pledged $4 billion, which did not fully materialize. Economists say the government will have to borrow money from domestic sources which will put pressure on interest rates. A high-interest environment will continue having an adverse impact on investment and growth."

"With donor money being reduced or shifted to projects designed to address the global financial crisis, civil society groups say they are adapting to the new economic climate. Observers are predicting leaner times for Cambodia's non-government sector following the announcement by several local organizations that they will trim staff and scale back projects in response to funding shortfalls.

Although donors and NGOs disagree as to whether the main culprit is the global financial crisis, changing donor priorities or a combination of both, some have raised questions about the sustainability of a sector primarily dependent on foreign largesse. Leading donors say they remain committed to the country, but with more donor money flowing into crisis-alleviation programs, the economic downturn has clearly forced some shifts in priorities."

"Massive reform initiatives are underway in banking, monetary and credit policies to bring dynamism to the Bangladesh economy. The implementation of the 'Central Bank Strengthening Project' aims to formulate and implement a prudent monetary policy while enhancing the regulatory capability of Bangladesh Bank to supervise financial institutions.

Bangladesh Bank issued directives to all commercial banks to introduce online banking facilities for customers to pay bills, fees of national, autonomous and semi-autonomous bodies along with utility bills to improve and accelerate the quality of client services, and modernize and update the banking system. The establishment of banking policies and regulations that conform to international standards and increase operational efficiency of Bangladesh Bank through computerization are the other highlights of the project."

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