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Asia Rebounding Rapidly, Bank Reports

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http://www.nytimes.com/2009/09/22/business...ml?ref=business

Asian economies slumped steeply when exports plunged during the winter, but most of the region is now rebounding quickly, the Asian Development Bank said in a report released on Tuesday.

The multilateral institution, based in Manila, declared that economic growth in China would be 8.2 percent this year, 1.2 percentage points higher than the bank’s forecast in March, and 8.9 percent next year.

The bank raised its 2009 growth forecast for India to 6 percent, from 5 percent predicted in March, and for developing Asian countries as a group to 3.9 percent, from 3.4 percent.

“Developing Asia is proving to be more resilient to the global downturn than was initially thought,†the bank said in a statement accompanying its semiyearly assessment.

A common factor among countries doing better than expected is that they have been able to offset weak exports by stimulating domestic demand more than anyone expected. Chinese banks have lent heavily, while the Indian government has gone on a spending spree.

Commercial banks across most of the region also came into the global financial crisis with mostly strong balance sheets, having become much more cautious after the Asian financial crisis in 1997 and 1998.

Taiwan, whose export-dependent economy has limited scope for increasing domestic demand, and Kazakhstan, whose banks lent too much as oil prices soared over the last several years, were among countries that had their growth forecasts downgraded in the report.

The speed of the recovery in Asia has renewed a debate over “decoupling†— the idea that growth in the region is becoming less closely correlated with that of the West. Some commercial banks have promoted the concept to suggest that Asian economies, and their stock markets, have become more stable and worthy of investment.

But Ajay Kapur, chief of global strategy and economics at Mirae Asset Securities, one of South Korea’s biggest financial services companies, said Asian economies might now be showing even wider swings in economic output in response to changes in the West.

“Economies tied to global trade fell harder in the crisis and are bouncing back with more vigor,†he said. “This is the opposite of decoupling.â€

Asia leading the global recovery.

All stimulated recovery paid for by govt, when they have spent there reserves then what? I would argue the govts are just wasting this money on pet projects by there cronies. Time will tell.

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http://www.nytimes.com/2009/09/22/business...ml?ref=business

Asia leading the global recovery.

All stimulated recovery paid for by govt, when they have spent there reserves then what? I would argue the govts are just wasting this money on pet projects by there cronies. Time will tell.

dont worry, mud hut taxes in Bangladesh will cover it.

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