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Asia outperforms in recession

On This Day - 19 November 2012
« Asia outperforms in recession »

The recession that has gripped the world has hurt nearly every economy. But the Asian economies (ex Japan) did better as compared to the western world. As shown in the today's chart, the region did exhibit healthy rates of growth till 2012. However the question now is how long can this continue? The Asian region has seen its growth slowing down in recent times. So will growth rebound to earlier levels or is the region set to see growth stabilizing at lower levels? The thing is that the region's exports have revived to some extent. However they are still expected to remain subdued given the crisis in US and Europe. Therefore, what can help it revive growth is domestic demand. And this continues to remain subdued. To boost demand, the governments have two alternatives. One is to release economic stimulus. This will help as a short term fix but will also stoke inflation. The other alternative is to embrace policy reforms. The second would be better as it would provide a long term growth driver for the region.

Data Source: Economic Times, CEIC

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