It is a fact, Asia’s economic growth are clearly beating Europe and the United States in the recovery and proving to be a pocket of great hope for the global economy.
But as Asia’s role in the global economy expands, the threats facing the Asian economy grow in importance as well.
A look at Asia beyond the headlines shows the region still faces significant economic challenges. These challenges vary from export problems in Taiwan to deflation in anemic Japan.
The strongest pillar is China, but economists also warn of headwinds there. The real estate growth in China can change into a real estate bubble.
Robert Subbaraman, chief economist for Asia outside Japan at Nomura in Hong Kong, says that according to him, the issues lie beyond the region itself. They include a possible renewed slowdown in the world’s big advanced economies, where many households are still paying down debt and worrying about the unemployment rate.
Despite its problems concerning global economy, Asia has a couple of home-grown problems to contend with.
This number one concern is China. the pace of growth has been so rapid that many analysts are worried that the economy may soon begin to overheat.
Still, optimism is the overriding feeling despite the headwinds. “Asia is growing up,” said Bill Belchere, global economist at Mirae Asset in Hong Kong. “I think the recovery will actually be a lot stronger and a lot more durable than many people think.”
I also agree with all of these statements. China sure does have a lot of problems that they have to deal with. But they’ll surely overcome these problems, like they’ve solved many others.
Bram Verstraete
Source: http://www.nytimes.com/2010/02/23/business/global/23asiaecon.html?pagewanted=1&sq=asian%20economy&st=Search&scp=2
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