Despite concerns over surging crude oil prices and the weak euro, the global conomy remains in better shape now than it was in 1998, when it was hit by the Asian financial crisis that broke out the previous year, the Economic Planning Agency said Tuesday.

In its fiscal 2000 white paper on the world economy, the EPA said many countries and regions are enjoying growth while rapid developments in information technology, such as growing use of the Internet and mobile phones, have had a major impact on global labor markets.

"Given the developments in IT and globalization of the economy, companies are seeking qualified employees with knowledge and skills while workers are required to improve their abilities in order to expand their working opportunities and incomes," the EPA said.

"It has become impossible at present to discuss the world economy without considering the IT development."

On regional economies, the EPA said East Asian nations started recovering in 1999 from the region's financial crisis, boosted by growing exports of electronic parts and devices for IT-related equipment and an expansion of personal consumption.

The economies have continued to see growth in exports and domestic demand in 2000 and are on the way to achieving self-sustainable recoveries, it said.

The EPA said the U.S. economy appeared to be overheating at the end of 1999 and beginning of 2000, with inflationary risks appearing as the strength of share prices fed into higher personal consumption.

However, the U.S. economy has slowed since the middle of this year, with stocks entering an adjustment phase and the U.S. Federal Reserve tightening its monetary grip, the agency pointed out.

The Fed raised two key interest rates by half a percentage point in May, citing fears of inflation.

"Housing investment as well as production have weakened in the latter half of this year," the agency noted.

The EPA said continuing economic growth in the U.S. is important for the world economy and that Washington must suppress inflationary pressures.

It said the European economy has been expanding since summer 1999, with the global economy turning upward and the weak euro boosting exports.

BOJ minutes released

Signs of a slowing U.S. economy and the continued slide in stock prices at home and abroad were among the main topics discussed at an Oct. 30 meeting of the Bank of Japan's Policy Board, according to the minutes released Tuesday.

Many members of the board of nine saw the need to keep an eye on how the slowing global economy, led by the economic engine of the United States, and tumbling stock prices will affect Japan's economic recovery, the minutes say.

"One member said the economic recovery had temporarily slowed somewhat," the minutes say. "However, the majority of members shared the view that it was unnecessary to change the judgment that the economy was recovering gradually."