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The financial turmoil in East Asia

nancial turmoil was confined to the small economies of the area, and the world could ignore the problem. This is no longer the case as the larger and more vital economies of the area are being affected, such as South Korea, whose economy is heading into recession next year because of a massive economic restructuring now taking place. Other countries face similar problems. Japan was managing a recovery, but that has been aborted. In September it was estimated that Japan would have growth of 2.9 percent in 1998, and that has been revised to 0.6 percent. South Korea and Thailand are expected to suffer a fall in output. Indonesia's growth has been halved, and China may drop next year. Asia has been estimated to account for two-thirds of world GDP growth since 1990, but the slowdown will not affect the developed world as much as it will emerging nations:

The main channel through which the rich economies will be affected is weaker demand for their exports. As Asian economies contract, their appetite for imports will fall, at least in the near term. In addition, the region's recent devaluations have made their own goods more attractive in world markets.

Thailand was given a $17.2 billion bailout from the International Monetary Fund, coupled with a new austerity package, and these efforts

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The financial turmoil in East Asia. (1969, December 31). In LotsofEssays.com. Retrieved 11:29, March 28, 2024, from https://www.lotsofessays.com/viewpaper/1707835.html