Asia and the global crisis: Recovery prospects and the future

Arbeitspapier

The global crisis of 2007-09 affected developing Asia largely through a decline in exports to the developed countries and a slowdown in remittances. This happened very quickly, and by 2009 there were already signs of recovery (except on the employment front). This recovery was led by China's impressive performance, aided by a large stimulus package and easy credit. But China needs to make efforts toward rebalancing its economy. Although private consumption has increased at a fast pace during the last decades, investment has done so at an even faster pace, with the consequence that the share of consumption in total output is very low. The risk is that the country may fall into an underconsumption crisis. Looking at the medium and long term, developing Asia's future is mixed. There is one group of countries with a highly diversified export basket. These countries have an excellent opportunity to thrive if the right policies are implemented. However, there is another group of countries that relies heavily on natural resources. These countries face a serious challenge, since they must diversify.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 619

Classification and Topics

• Classification: Wirtschaft ; Policy Objectives; Policy Designs and Consistency; Policy Coordination ; Macroeconomic Analyses of Economic Development ; Economywide Country Studies: Asia including Middle East ; Comparative Studies of Countries
• Subject: Asia ; China ; global crisis ; open forest

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Felipe, Jesus
• Event: Veröffentlichung
• (who): Levy Economics Institute of Bard College
• (where): Annandale-on-Hudson, NY
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/57039
• Last update: 10.03.2025, 11:43 AM CET