Asia Economic Monitor - December 2011
Economic growth of emerging East Asia moderated in the second half of 2011 due to weaker external demand and tightened monetary policies to battle inflation. A special section asks: Can East Asia can weather another global economic crisis?
The Asia Economic Monitor is a semiannual review of emerging East Asia's growth and policy issues. It covers the 10 members of the Association of Southeast Asian Nations (ASEAN); the People's Republic of China (PRC); Hong Kong, China; Republic of Korea; and Taipei,China. This issue includes a special section: Can East Asia Weather Another Global Economic Crisis?
- Economic growth in emerging East Asia moderated this year due to weaker external demand and tightened monetary policies to battle inflation; investment edged up, while consumption remained strong.
- Inflation appears to have peaked, but remains a concern for several economies.
- Balance of payments were mixed; the newly industrialized economies’ surplus narrowed on reduced current account surpluses, while those in the PRC and middle income ASEAN increased slightly.
- Stock market indexes in emerging East Asia were volatile as investor sentiment swayed in tandem with the unfolding eurozone crisis and US economic uncertainty.
- Currency movements were mixed; largely mimicking market reaction to events in the eurozone and US.
- Bond yield curves flattened due to declines in long-term interest rates—meaning investors expect weaker growth.
- Across the region, safeguarding growth is becoming the focus of policymakers as the global economy slows.
- Although emerging East Asia’s financial systems remain sound, vulnerabilities exist.
- Emerging East Asia: A Regional Economic Update
- Economic Performance
- Emerging East Asia - A Regional Economic Update Economic Outlook, Risks, and Policy Issues
- Can East Asia Weather Another Global Economic Crisis?