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How much slack is left in the NIEs?

There are indications that the amount of spare capacity in the Newly Industrialised Economies (NIEs: Hong Kong, Singapore, Taiwan and Korea) is starting to be used up. As a result, while there is probably scope for growth in these economies to pick up a bit over the next year on the back of stronger export demand, it won’t be too long before supply-side constraints start to bite.

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