Asia Economic Monitor - December 2011 | Asian Development Bank

Asia Economic Monitor - December 2011

Publication | December 2011
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?

Highlights

  • 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.

Contents 

  • Emerging East Asia: A Regional Economic Update
  • Highlights
  • Economic Performance
  • Emerging East Asia - A Regional Economic Update Economic Outlook, Risks, and Policy Issues
  • Can East Asia Weather Another Global Economic Crisis?