Although low demand from the US and European countries slowed down growth in China and triggered a recession in Japan and Korea, consumer demand and especially investment in infrastructure and new technologies continue. In addition the exposure of the financial sector to toxic assets seems to be much smaller than in the US and Europe. Fiscal stimulus packages will also support a fast economic recovery.
East Asia: A region to lead the next economic decade
Specifically, China will benefit from ongoing strong domestic demand, buoyed by both consumers and the state. Japan is very well positioned for the upcoming shift in US and global spending away from the defense sector to new sectors like health and the non-carbon industry, and South Korea will soon see exports stabilize on the back of its low exchange rate.
Therefore the East Asian region will be one of the early beneficiaries of the coming economic turnaround.
Dr. Volker Deville
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