By Anoop Singh
Asia’s leadership of the global economic recovery is continuing unabated. And, even though heightened risks mean there may be tough times ahead again, the region is well equipped to handle them.
Asia’s remarkably fast recovery from the global financial crisis continued in the first half of 2010, despite the recent tensions in global financial markets. In fact, GDP growth in the first quarter was generally stronger than we anticipated in our Regional Economic Outlook in April. And high-frequency indicators suggest that Asian economic activity remained brisk in the second quarter. Even more notable, this is true both for economies that escaped a recession in 2009, thanks to their relatively larger domestic demand bases (China, Indonesia, and India), and for the more export-oriented economies such as Japan, the Newly Industrialized Economies (NIEs), and the rest of the ASEAN.
Two growth engines
What explains the strong economic momentum across the region? It is simple. The two “engines of growth” that spurred Asia’s recovery in 2009— exports and private domestic demand—have remained robust in 2010.
Filed under: Asia, Economic Crisis, Emerging Markets, Financial Crisis, Fiscal Stimulus, growth | Tagged: ASEAN, Asia, Australia, capital flows, China, domestic demand, exports, Fiscal Stimulus, global economy, India, Indonesia, International Monetary Fund, Japan, New Zealand, policy stimulus, private domestic demand, regional economic outlook, World Economic Outlook | Leave a Comment »