Finance ministers of the Association of Southeast Asian Nations (ASEAN) today expressed confidence that the next millennium will bring higher, sustainable growth for the region, following the remarkable turnaround exhibited by ASEAN's crisis-hit economies this year.

Philippine Finance Secretary Edgardo Espiritu, speaking on behalf of his counterparts in ASEAN, said moderate growth in the region has restored investor confidence, as shown by the rebound of stock markets and the rise in capital inflows.

He noted that a peer review conducted by the finance ministers showed a continuing improvement in the performances of the individual ASEAN economies, which are expected to collectively grow by 2-3 percent this year as compared with the seven percent contraction the region experienced last year.

All ASEAN countries, Espiritu added, are also expected to register positive Gross Domestic Product growth rates of up to six percent this year.

"We expect ASEAN to begin the next millennium poised for higher and sustainable growth," he said in a press briefing after the Special ASEAN Finance Ministers Meeting held at the Manila Hotel this morning.

Espiritu attributed ASEAN's economic recovery to the fiscal and monetary policies as well as the corporate and financial sector reforms already in place before the crisis battered the region.

"Expansive fiscal policy has contributed to improved domestic demand while mitigating the adverse impact of the crisis on the poor and unemployed" Reforms in the corporate and financial sector have set the state for their healthy development," Espiritu said.

ASEAN finance ministers also noted the concerted efforts by the G-7 economies early this year to stabilize the financial markets and sustain global demand, which helped ASEAN exports recover.

Espiritu also cited the sustained growth of the United States economy, the recovery by Japan, the restoration of export financing and depreciating real exchange rates as among the factors that contributed to the turnaround of the ASEAN export sector.

He said the anticipated rebound of European economies next year will also help minimize the impact of the continued soft landing of the US economy on ASEAN exports, while increases in oil prices also lifted the economic performances of ASEAN's oil producing and exporting members.

The special meeting of finance ministers is among the series of conferences being held in Manila from November 24-28 as part of the 3rd ASEAN Informal Summit.