Asia reacts to crisis
Güncelleme Tarihi:
AP
Oluşturulma Tarihi: Ocak 27, 2009 00:00
SINGAPORE - Governments across Asia have pledged a combined $700 billion in stimulus spending and central banks have slashed interest rates to spur growth and cushion the blow of plunging export demand from the West.
Will the moves stave off a lengthy regional recession?
Much depends on how Asian consumers and businesses respond to the stimulus measures - which range from construction projects in China to create jobs to cash handouts and loan guarantees in Singapore.
Some analysts say Asia could be the first region to recover from the global crisis later this year because its financial systems are on sounder footing than those in the West, allowing consumers and companies to better take advantage of the public spending and lower rates. Banks haven't needed massive bailouts, and consumer and bank debt levels are lower than in the U.S., meaning people and businesses may be more willing to borrow, lend and spend.
"Asia faces fewer structural problems than elsewhere in the world, and the policy easing has a better chance of working here than in the U.S." said Richard Urwin, who helps manage more than $10 billion of stocks, bonds and other investments, including Asian assets, for BlackRock Inc. in London. "It's sensible to expect some gap opening up this year between what's happening in the U.S. and what's happening in this region."
Much depends on how Asian consumers and businesses respond to the stimulus measures - which range from construction projects in China to create jobs to cash handouts and loan guarantees in Singapore.
Some analysts say Asia could be the first region to recover from the global crisis later this year because its financial systems are on sounder footing than those in the West, allowing consumers and companies to better take advantage of the public spending and lower rates. Banks haven't needed massive bailouts, and consumer and bank debt levels are lower than in the U.S., meaning people and businesses may be more willing to borrow, lend and spend.
"Asia faces fewer structural problems than elsewhere in the world, and the policy easing has a better chance of working here than in the U.S." said Richard Urwin, who helps manage more than $10 billion of stocks, bonds and other investments, including Asian assets, for BlackRock Inc. in London. "It's sensible to expect some gap opening up this year between what's happening in the U.S. and what's happening in this region."