The annual inflation rate which reached a high of 8.0% in 1998, is expected to drop significantly to 3.1% and 3.5% in 1999 and 2000 respectively. The Asian annual current account balance, which stood at a deficit of $ billion in 1998 is expected to decline significantly to $ billion in 1999 and drop further to $ billion in 2000.
Net private capital flows in Thailand, the Philippines, Indonesia, Malaysia and Korea fell from $ billion in 1996 to a negative of $ billion in 1997 and $ billion in 1998. They are expected to improve but remain negative at $ billion in 1999 and $ billion in 2000.