Fig. 3 repeats the same analysis as in Fig. 2, but for a GDP-weighted average of the key
Asian developing economies (excluding Singapore). The figure confirms that the model
(again, Table 3, Column 5) not only predicts the level of the developing Asian current
account balance reasonably well in 1997e2003, but also tracks its upswing from the
1992e1996 period. As might be expected, the financial crisis variables account for much
of that rise, as does the decline in the relative growth performance (green vertical lines) of
the Asian economies.