ASIAN economies are proving resilient despite the recent turbulence in global financial markets, according to Standard & Poor’s Ratings Services.
According to S&P’s report, Asian Resilience Amid Global Turbulence, strong regional drivers will help insulate Asia from the adverse impact of a moderate recession in the
S&P’s Asia-Pacific chief economist, Subir Gokarn, said that whilst Asia-Pacific growth rates would slow somewhat, the region would still grow at a relatively fast pace in 2008 and 2009—buoyed by
“Two of the three largest economies—China and India—are also the fastest growing and, together, they will continue to grow at about 8% or above over the next two years.
“This provides the region with enormous momentum,” Gokarn said.
According to S&P, other important factors in the region’s resilience include
Gokarn said increasing integration is reflected in the overall thrust of trade policy in the region, which has seen a significant increase in intra-regional trade and broader agreements.
But he cautioned that the region still faces key risks, including a prolonged
“There are some visible threats to the region in the form of food and energy prices, which may adversely affect performance over the next couple of years.
“Managing these risks will be the most important challenge facing policymakers across the region as they try and sustain their own performance while moving towards greater integration,” Gokarn concluded.
Australian Property Journal
