Weathering the Financial Storm in East Asia
The above quote is from the just-released World Bank East Asia Update, and the storm clouds are still gathering over Asia. Growth in East Asian countries was already slowing before the crisis reached a new level of intensity in the middle of September. Governments around the region have made efforts to boost domestic demand through fiscal stimulus programs and monetary policy actions, but the pace of economic expansion is set to weaken further in 2009. GDP growth estimates are now only 5.4 percent for the region in 2009, as compared to 9 percent in 2007. This reflects the significant deceleration in exports in particular, as well as decreased foreign investment and domestic consumption.