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World Bank: Asia has overcome crisis, but vigilance necessary
Asia has conquered its financial crisis, but progress has been uneven throughout the region and incomplete restructuring efforts leave economies vulnerable, the World Bank said on Monday.
Asia has conquered its financial
crisis, but progress has been uneven throughout the region and incomplete restructuring efforts leave economies vulnerable, the World Bank said on Monday.
The stellar performances of South Korea and Malaysia in overhauling their financial and corporate sectors contrast with Indonesia, where such efforts remain embryonic and investor trust in the government is low, said Masahiro Kawai, the bank's East Asia and pacific region chief economist.
East Asia's recovery from the 1997 financial crisis has been remarkable, said Kawai, who briefed reporters on the World Bank's East Asia semi-annual report. But he added weaknesses remain that could, if left unattended, make the region susceptible to a downturn.
He said that Thailand has yet to complete reform of its financial sector, and in the Philippines stock market scandals and government instability have caused investors to flee.
“Such a situation makes convalescent Asian economies particularly vulnerable to looming threats in the global economy,” Kawai said.
For example, high oil prices - which are expected to shave one percent off the world economy next year if they remain at $35 per barrel - could put the breaks on growth in oil-consuming Asian nations. Bureau Report
The stellar performances of South Korea and Malaysia in overhauling their financial and corporate sectors contrast with Indonesia, where such efforts remain embryonic and investor trust in the government is low, said Masahiro Kawai, the bank's East Asia and pacific region chief economist.
East Asia's recovery from the 1997 financial crisis has been remarkable, said Kawai, who briefed reporters on the World Bank's East Asia semi-annual report. But he added weaknesses remain that could, if left unattended, make the region susceptible to a downturn.
He said that Thailand has yet to complete reform of its financial sector, and in the Philippines stock market scandals and government instability have caused investors to flee.
“Such a situation makes convalescent Asian economies particularly vulnerable to looming threats in the global economy,” Kawai said.
For example, high oil prices - which are expected to shave one percent off the world economy next year if they remain at $35 per barrel - could put the breaks on growth in oil-consuming Asian nations. Bureau Report