Malaysia and Thailand. Both countries have moved into economic recovery, with fiscal and monetary policy that is supportive. Bank reform is proceeding well in both countries, and both have a framework for corporate restructuring that needs to be implemented. The crisis in East Timor and recent elections continue to raise fundamental political issues that forestall a quick return to financial stability. Bank reform is incomplete, and few procedures for corporate reform and restructuring have been implemented.
China continues to struggle with weak domestic demand, capital outflows and rising unemployment.
Despite China's problems, growth is expected to be 6 percent in 2000, following a gradual downward trend from 8.8 percent in 1997. Latin America Latin America was the last region to be infected with Asian contagion, and the effects are still being felt. Mexico continues to benefit from proximity and strong trade ties to the United States, and Brazil has come back very quickly from its 1998 crisis. However, Argentina, Chile, Colombia, Ecuador and Venezuela have all slipped into recession. Overall, the IMF sees no GDP growth in Latin America in 1999 but predicts improved performance of 3.9 percent in 2000.