US to stay growth engine

PUBLISHED : Tuesday, 31 October, 2000, 12:00am
UPDATED : Tuesday, 31 October, 2000, 12:00am

The United States economy's unprecedented strength will continue to drive global growth for the foreseeable future, said one of the country's leading economists, Arthur Laffer.

Mr Laffer - a former Reagan administration adviser - said the US economy was in a 'dream period' of prosperity and growth and, barring any severe government intervention, would remain so.

On Friday, US gross domestic product came in at 2.7 per cent. The figure revealed a slowing US economy and analysts are questioning how far this will affect Asian economies, as buoyant US growth has been a key factor in restoring Asian growth post-1997.

Economists fear a US slowdown will cause Asia to lose its primary economic engine.

According to Mr Laffer China's pro-supply side policies would ensure it became one of the most important nations economically.