Impact of the global crisis on the Asian economies

December 4, 2008

A press release by IMF (24.11.2008) depicts a larger impact of the global crisis on the Asian economies due to the report of the Regional Economic Outlook (REO) for Asia and Pacific: "Growth in Asia is expected to slow substantially along with the rest of the world, as exports weaken and spillovers from the global financial turmoil weigh on domestic activity". Furthermore, the expectation of a recovery in these markets needs to be revised because of the higher risks than the anticipations and it is recomended that the policiy makers in the region should take actions against the global crisis by taking the idea that the crisis will show its effects in the long run into considiration. The policies which are needed to be implemented rapidly should help the market solve the issues with three main title; safeguarding the financial systems and maintaining the orderly credit conditions, stabilizing the prices and avoiding an inflation risk and implementing fiscal policies to stimulate the markets without a big budget deficit burden.

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