Asia is stronger than the U.S. and Europe 20 years after its economic flu
The Asian economy became resilient and robust following its meltdown 20 years ago.
Bloomberg takes a look back at the economic meltdown that slowed Asia’s progress down 20 years ago and compares it to its current growth today. The verdict? The region is robust, resilient, and can withstand another crisis even if the worst case scenario happens. Asia does seem to be emerging as a center of financial power and industrial development and is giving stiff competition to the U.S. and Europe, which have been experiencing setbacks recently.
Four factors support Asia’s economic might and will prevent its being toppled anytime soon. Its paltry currency reserves of $1 trillion during the 1996 crisis have since soared to $6 trillion. Half of that amount comes from China. That amount itself also makes up more than half of global currency holdings. All those reserves indicate Asia’s second source of financial strength: an abundance of reserves which can mitigate any downturn and stop in its tracks any impending collapse.
Third, the fastest-growing nations in the world can be found in the region. In particular, China, India, and the Philippines each have an impressive annual growth rate of six percent. Finally, the countries in Asia have significantly reduced their foreign debt as well as their reliance on foreign exports. Consumption of their own goods and services by the populace reinvigorate their economy. The Philippines and Indonesia also have huge populations of young people who are both consumers and producers, which again are triggers for growth.
In contrast, observers are advising caution when it comes to the U.S. economy. Investopedia notes that while Asia has the aforementioned factors of growth, America seems to have the opposite. Massive foreign debt that makes up 106 percent of the gross domestic product (GDP) is a deterrent to growth and can limit productivity and innovation. Instead of a young workforce, the talent pool in the U.S. is getting on in years. Low population growth and a clampdown on immigration can curtail consumer spending and prevent fresh young blood from coming into power the economy.
Meanwhile, The Gulf Times reports that Europe finds itself in the middle. Despite the economic crash that different countries in the continent the past years had experienced, it has rebounded with a promising growth of 1.6 percent. What can impede that growth is the same aging workforce that is present in the U.S. While immigrants are welcomed, they may not yet have the necessary skills or education to buoy employment.
As Europe and the U.S. struggle against their internal issues, Asia is receiving global investments that are currently worth $45 billion. The currencies of Malaysia, the Philippines, South Korea, and Thailand are particularly expected to rise in value. Twenty years after the so-called flu that bears its name, Asia appears poised to take on the economic leadership of the world.
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [Week 21]
With car prices predicted to tank, there's an opportunity for affiliates to cash in big. To learn how, all you...
Miwendo Opens Round of €4 Million after Capturing €1.6 Million from Health
In November, Miwendo developed a first clinical study, and will now work on a second, both at the Hospital Clínic...
Coinbase Signs License Agreement to Provide Liquidity and Custody Services with Bitpanda
As Coinbase begins its European expansion, the licensing agreement with Bitpanda serves as a strategic move to capitalize on opportunities...
P&G SGR and UpsideTown Launch Energy Town Fund Dedicated to Renewables
EnergyTown represents an innovation in terms of the target for raising funds on a fintech platform: the first round that...
Cape Verde PM Asks Banks to Change Perception of Financing in Agriculture and Fisheries
POSER was funded at a cost of $36.9M by the Government of Cape Verde, the International Fund for Agricultural Development...
Crowdfunding1 week ago
UniCredit Bank Austria Launches Ninth Crowdfunding Initiative
Crypto2 weeks ago
The Ultimate Crypto Power Game Involves Bitcoin and Cardano, Says Analyst
Featured3 days ago
Fintech Infrastructure Is Essential for Digital Economy, Experts Agree
Business1 week ago
Creating an Online Jewelry Business: Step-by-Step Journey
You must be logged in to post a comment Login