Asia's sinking economies

Trade within Asia is part of a globalised supply chain which is ultimately linked to demand in the rich world.

 

export-led growth

structural reforms

 

Infrastructure spending alone is not a long-term solution. This sort of stimulus will sooner or later become unaffordable, and growth based on it will run out of steam.

Asia’s economies need to become less dependent onexports in other ways.

  

Across Asia, economies need to shift away from increasingly capital-intensive manufacturing towards labour-intensive services, so that a bigger share of national income goes to households.

 

The Asian financial crisis a decade ago was caused by Asia’s excessive dependence on foreign capital. This time the tigers have been tripped up by their excessive dependence on exports.

 

People have high levels of share ownership, so tumbling stockmarkets and property prices
are depressing consumption