(HN, December 7, 2010) The emerging "tiger economies" of Asia will see moderate growth at best in the coming year due to continuing slow demand in the USA and Europe.
According to the Asian Development Bank's just-released Asian Economic Monitor, the Asian economies saw a robust recovery in the past year due to higher domestic demand, stimulus interventions and low financial vulnerability.
While many of the economies received high marks for good economic house-keeping - many are export-dependent and cannot escape the economic contagion from the USA and Europe.
"The external economic environment for emerging East Asia has weakened as the US economy continues to struggle and doubts remain over the sustainability of the eurozone recovery," said the ADB. "Many emerging East Asian economies now face the challenge of managing strong growth and capital flows amid a weaker external environment."
Small economies, which just a few months ago appeared on the brink of collapse, are clawing their way back. Laos, for instance, benefitted from construction related to the Southeast Asian games and higher mineral production.
Myanmar (also known as Burma), which has been battered by severe weather events and political unrest, saw economic growth improve to 4.4% in 2009 from 3.6% the previous year boosted by large inflows of foreign direct investment, the ADB said.
One of the extraordinary developments has been the surge in stock market growth in the emerging economies of East Asia.
The ADB reports increases in bourses such as: Indonesia (44.3%), Thailand (38.3%), Philippines (35.7%) and Malaysia (17.5%) posting record highs.
- HUMNEWS staff, ADB