Great Recession in Asia

{{See also|Chinese property bubble (2005–2011)}}

In China, the International Monetary Fund predicts GDP growth for 2008 will be 9.7% and drop to 8.5% in 2009.{{cite journal|url=http://www.imf.org/external/pubs/ft/weo/2008/update/03/index.htm |title=Rapidly Weakening Prospects Call for New Policy Stimulus |journal=IMF World Economic Outlook (WEO) Update |publisher=IMF |date=November 6, 2008 |access-date=2009-01-04}} A struggle was underway to see who would swallow the losses on US Agencies and Treasuries.{{cite news|url=https://www.nytimes.com/2008/09/05/business/worldbusiness/05yuan.html |title=China's Central Bank Is Short of Capital - NYTimes.com |work=The New York Times |author=Keith Bradsher |date=September 4, 2008 |access-date=2008-10-01}} On November 9, 2008 China announced a package of capital spending plus income and consumption support measures. Four trillion yuan ($586 billion) will be spent on upgrading infrastructure, particularly roads, railways, airports and the power grid; on raising rural incomes via land reform; and on social welfare projects such as affordable housing and environmental protection.{{cite news|url=https://www.forbes.com/business/2008/11/09/china-stimulus-economy-biz-cx_pm_1109notes.html |title=China Announces Massive Stimulus Package |work=Forbes.com |author=Paul Maidment |access-date=2008-11-11 |date=2008-11-09 |url-status=dead |archive-url=https://web.archive.org/web/20081112053515/http://www.forbes.com/business/2008/11/09/china-stimulus-economy-biz-cx_pm_1109notes.html |archive-date=November 12, 2008 }}{{cite web| url=http://www.iht.com/articles/2008/11/10/asia/10china.php |title=China unveils $586 billion stimulus plan|publisher=International Herald Tribune |author=David Barboza

|date=November 10, 2008 |access-date=2008-11-10}} So far at least 670,000 small and medium-size enterprises have been closed.[http://ipsnews.net/news.asp?idnews=45341 LABOUR-CHINA: Mass Unemployment Looms] {{Webarchive|url=https://web.archive.org/web/20120305051813/http://ipsnews.net/news.asp?idnews=45341 |date=2012-03-05 }}, ipsnews.net, January 9, 2009

The Hong Kong economy officially slid into recession in the final quarter of 2008. The economy is predicted to grow at 2 percent in 2009. Hong Kong is an advanced tertiary economy built on services, retail, tourism, transport and financial industries. Hong Kong's manufacturing industry is located in Guangdong province which employs over 11 million people.{{cite news|first=John |last=Chan |url=http://www.wsws.org/articles/2008/nov2008/hong-n21.shtml |title=Hong Kong enters recession |work=World Socialist Web Site |publisher=International Committee of the Fourth International |date=21 November 2008 |access-date=2009-01-04}} The Hang Seng Index has lost over 60 percent of its value, property market lost over 40 percent in value and unemployment is at a record high of 4.8 percent.{{cite news|url=http://news.bbc.co.uk/1/hi/business/the_economy/160180.stm |title=The Economy - Hong Kong battles recession and speculators |publisher=BBC News |date=August 28, 1998 |access-date=2009-01-04}}

Taiwan announced billions of dollars in spending and tax cuts due to declining growth and a 26 percent slump in the stock market in 2008.{{cite news|url=https://www.telegraph.co.uk/money/main.jhtml?view=DETAILS&grid=&xml=/money/2008/09/11/bcnkiwi111.xml|title=New Zealand slashes rates as economy lurches toward recession|publisher=Daily Telegraph|date=2008-09-11|access-date=2008-09-12 | location=London}}{{dead link|date=July 2021|bot=medic}}{{cbignore|bot=medic}} The bankruptcy of Lehman Brothers raised concerns about global exposure to the assets and stock of Lehman Brothers and the potential for the bankruptcy to cause further tightening of credit. Taiwan, despite reporting few losses from the subprime mortgage crisis, was said to have Lehman-related exposure for its companies and retail investors totaling $2.5 billion. To increase purchasing power, the ROC government has issued the ROC consumer voucher.

{{See also|Lost Decades}}

In Japan exports in June declined for the first time in about five years falling by 1.7 percent. Exports to the United States and European Union fell 15.4 percent and 11.2 percent respectively. The decline in exports and increase in imports cut Japan's trade surplus $1.28 billion a decline of 90 percent from the previous year. An economist at the Royal Bank of Scotland said the decline means the Japanese economy most likely declined in the second quarter.{{cite news|url=https://www.reuters.com/article/gc04/idUST1165520080724|title=Japan exports shrink as global downturn hits Asia|publisher=Reuters|date=2008-07-24|access-date=2008-07-25}} Taro Aso, secretary-general of Japan's Liberal Democratic Party, said he believes Japan had entered a recession.{{cite news|url=https://www.reuters.com/article/bondsNews/idUSTKF00327920080805|title=Japan ruling party's Aso: Economy in a recession|publisher=Reuters|date=2008-08-05|access-date=2008-08-10 | first=Chisa | last=Fujioka}}

Japan's economy declined by 0.6 percent in the second quarter of 2008.{{cite news|url=https://business.timesonline.co.uk/tol/business/economics/article4521121.ece|title=Japan heads towards recession as GDP shrinks|work=The Times|date=2008-08-13|access-date=2008-08-17 | location=London | first1=Heath | last1=Aston}} This was later revised to a decline of 0.7 percent.{{cite news|url=http://afp.google.com/article/ALeqM5h8ln5YBiFaVbyyB3u_9_k5DmuAYg|title=Japan economy contracts by most in seven years|publisher=Agence France-Presse|date=2008-09-12|access-date=2008-09-16|archive-url=https://web.archive.org/web/20080915071234/http://afp.google.com/article/ALeqM5h8ln5YBiFaVbyyB3u_9_k5DmuAYg|archive-date=2008-09-15|url-status=dead}} Japanese exports grew 0.3 percent in August 2008 compared to a year before down from 8 percent the previous month. Exports to the U.S. fell 21.8 percent, the biggest decline on record, and exports to Europe fell 3.5 percent.{{cite news|url=https://www.bloomberg.com/apps/news?pid=20601087&sid=aIXeVNvMckiI&refer=home|title=Japan's Export Growth Slows as U.S. Shipments Plunge|publisher=Bloomberg|date=2008-09-25|access-date=2008-09-26}} Two Japanese banks appeared on the list of major Lehman creditors.{{cite news|url=http://in.reuters.com/article/businessNews/idINIndia-35488720080915|title=Lehman fallout threatens deeper, wider recession|publisher=Reuters|last=Kaiser|first=Emily|date=2008-09-16|access-date=2008-09-16|archive-date=2008-12-16|archive-url=https://web.archive.org/web/20081216072132/http://in.reuters.com/article/businessNews/idINIndia-35488720080915|url-status=dead}} On November 17, the Japanese Economy Minister announced that the nation was officially in a recession.{{cite news|url=http://news.bbc.co.uk/2/hi/business/7732733.stm|title=Japanese economy now in recession | work=BBC News | date=2008-11-17 | access-date=2010-01-05}}

By September 2008, the crisis threatening the GSEs (US mortgage lenders Fannie Mae and Freddie Mac) began to have consequences in Asia. The foreign exchange reserves of South Korea's central bank contained many depreciating "Agency bonds" from the GSEs, threatening a currency crisis and leading to depreciation of the South Korean won against the US dollar and other major currencies.{{cite news|url=http://business.timesonline.co.uk/tol/business/economics/article4648549.ece |archive-url=https://web.archive.org/web/20080907091714/http://business.timesonline.co.uk/tol/business/economics/article4648549.ece |url-status=dead |archive-date=September 7, 2008 |title=South Korea heads for black September with won problems - Times Online |publisher=The Times |author=Leo Lewis in Seoul |date= 2008-09-01|access-date=2008-10-01 | location=London}} Samsung Electronics has been reported to be posting a decrease in sales for the first time since the 1997 Asian financial crisis that home appliances saw a decrease in the domestic market of up to 20 percent since mid-June compared to the previous year. Domestic auto sales also saw a decrease in the second quarter. Auto exports also posted a loss and exports of home appliances were also reported to be in decline.{{cite news|url=http://english.chosun.com/w21data/html/news/200807/200807070020.html |title=Autos, Electronics Face Slumps at Home and Abroad |publisher=The Chosun Ilbo |date=2008-07-07 |access-date=2008-07-25 |url-status=dead |archive-url=https://web.archive.org/web/20090422191107/http://english.chosun.com/w21data/html/news/200807/200807070020.html |archive-date=April 22, 2009 }}

In January 2009, Malaysia has banned the hiring of foreign workers in factories, stores and restaurants to protect its citizens from mass unemployment amid the global economic crisis.[http://english.aljazeera.net/news/asia-pacific/2009/01/20091228418535985.html Malaysia bans foreign labourers], Al Jazeera English, January 22, 2009

It was announced that some foreign companies would fire workforce in Malaysia. In 2009 GDP contracted 1.7%.{{Cite web |url=http://www.statistics.gov.my/portal/index.php?option=com_content&view=article&id=53%3Agross-domestic-product-gross-national-income-updated-18082010&catid=35%3Akey-statistics&Itemid=53&lang=en |title=Gross Domestic Product / Gross National Income (Updated :18/08/2010) |access-date=2010-09-18 |archive-date=2010-08-28 |archive-url=https://web.archive.org/web/20100828060814/http://www.statistics.gov.my/portal/index.php?option=com_content&view=article&id=53:gross-domestic-product-gross-national-income-updated-18082010&catid=35:key-statistics&Itemid=53&lang=en |url-status=dead }}

Unlike the other economies in the region, The Philippines was the only one of a few countries to have recorded a positive economic growth in 2009 and not have a recession.[http://www.imf.org/external/pubs/ft/weo/2009/01/weodata/weorept.aspx?sy=2008&ey=2008&scsm=1&ssd=1&sort=country&ds=.&br=1&c=548%2C273%2C223%2C924%2C566%2C199%2C578%2C534%2C186&s=PPPGDP&grp=0&a=&pr.x=44&pr.y=13 IMF World Economic Outlook Database, April 2009.] GDP-PPP figures of selected NIC countries for 2007 and 2008. However, the country suffered during the 2008 financial crisis as the economy was based on the remittances of the Overseas Filipinos, most of them working in affected countries such as the United States.

Booming and then Decreasing oil prices will affect Persian Gulf countries.

Real estate prices in Dubai have decreased substantially.[http://www.ameinfo.com/176390.html Palm Jumeirah prices drop 40%]

Lebanon is one of the only seven countries in the world to have scored profits in 2008.{{cite news|url= http://www.timesonline.co.uk/tol/money/investment/article4881201.ece|archive-url= https://web.archive.org/web/20100525123917/http://www.timesonline.co.uk/tol/money/investment/article4881201.ece|url-status= dead|archive-date= May 25, 2010|title= Where on earth can you make a decent return?|publisher= The Sunday Times |date= October 5, 2008 | location=London | first=Kathryn | last=Cooper | access-date=2010-05-07}} Given the regular security turmoil it has faced in the past, its banks have adopted a conservative approach. The strict regulations imposed by the central bank were crafted to make the Lebanese economy immune to political crisis; and so far, this has applied to the global economic crisis as well. The Lebanese banks remain, under the current circumstances, high on liquidity and reputed for their security.{{cite news|url= http://news.bbc.co.uk/2/hi/middle_east/7764657.stm|title= Lebanon 'immune' to financial crisis|publisher= BBC News |date= 5 December 2008 | access-date=2010-01-05}}

Moody's has recently shifted Lebanon's sovereign rankings from stable to positive acknowledging its financial security.{{cite web|url= http://www.finance.gov.lb/NR/rdonlyres/E596B40E-228F-4D78-A797-94A7509D5819/0/LebanonPR.PDF|title= Moody's changes outlook for Lebanon's sovereign ratings to positive from stable|publisher= Moody's|date= 11 December 2008}}{{dead link|date=September 2024|bot=medic}} Moreover, with a Beirut stock market increase of 51%, the index provider MSCI, ranked Lebanon as the world's best performer in 2008. Analysts are, nonetheless, skeptic about the future indirect effects of the crisis, but so far, the direct consequences have proved to be positive.

Bangladesh economy is not affected by the global recession. Bangladesh's economic growth and exports remain quite strong.{{cite web|url=http://www.newstoday-bd.com/frontpage.asp?newsdate=02/13/2009|title=Dhaka won't need IMF support now}}

File:S&P BSE SENSEX chart.svg, the BSE Sensex dropped from over 21,000 points in January 2008 to below 8,000 points in October 2008

{{Cite news |url = https://www.ndtvprofit.com/business/the-sensex-journey-from-2008-to-2013-371137 |title = The Sensex journey: From 2008 to 2013 |publisher = NDTV Profit |date = 1 November 2013 }}]]

India's economy benefited from recent high economic growth which declined greatly due to the global economic crisis.{{cite news|url=http://in.reuters.com/article/businessNews/idINIndia-36541420081117|title=JPMorgan cuts India growth forecast, sees rate cuts|work=Reuters|date=2008-11-17|access-date=2009-02-06|archive-date=2008-12-16|archive-url=https://web.archive.org/web/20081216072137/http://in.reuters.com/article/businessNews/idINIndia-36541420081117|url-status=dead}}{{cite web|url=https://www.google.com/hostednews/afp/article/ALeqM5hOrAONdeEc34190B_3v1rW425XPg|archive-url=https://web.archive.org/web/20081216120005/http://www.google.com/hostednews/afp/article/ALeqM5hOrAONdeEc34190B_3v1rW425XPg|url-status=dead|archive-date=December 16, 2008|title=India sees growth accelerating to 9 pct next year}} Economic growth in India during FY2008-09 stood at 6.7%.[http://www.news.com.au/perthnow/story/0,21598,25560500-5017962,00.html India economy grows by 6.7 pct in 2008-09, beats forecasts] The global crisis had less impact of India because exports account for only 15% of India's GDP, less than half the levels of major Asian economic powers such as China and Japan.[https://www.forbes.com/feeds/afx/2009/05/29/afx6479496.html Indian growth beats expectations, fuels recovery hopes]{{dead link|date=January 2022|bot=medic}}{{cbignore|bot=medic}} However, unlike other major Asian economies, India's government finances were in poor shape and as a consequence, it was not able to enact large-scale economic stimulus packages.[http://www.economist.com/opinion/displaystory.cfm?story_id=14214001 An astonishing rebound - Economist] Despite this, from June 2008 to June 2009, industrial production in India grew by 7.1%.[https://archive.today/20120709033638/http://in.reuters.com/article/domesticNews/idINBNG52925920090812 India's June industrial output up 7.8 pct y/y]

The former Indian Finance Minister P. Chidambaram expected India's economy to "bounce back" to 9% during FY2009.{{cite web|url=https://www.bloomberg.com/news/articles/2007-12-03/chidambaram-says-india-may-sustain-9-growth-a-record-3rd-year|title=India May Sustain 9% GDP Growth for a Record 3rd Year}} India's then Prime Minister Manmohan Singh said that the government will take measures to ensure that the economic growth bounces back to 9%.[https://www.wsj.com/articles/SB125034006483034393 Singh Targets 9% Growth for India] Nevertheless, India's overall growth of GDP in 2008-09 was 6.7%.{{cite web|url=https://www.indiabudget.gov.in/budget_archive/es2008-09/chapt2009/chap12.pdf|title=ECONOMIC GROWTH DURING 2008-09}} The Asian Development Bank predicted India to recover from weakening momentum in 4-6 quarters.{{cite news|url=http://www.business-standard.com/india/storypage.php?autono=340618|title=India is likely to recover in 4-6 quarters|newspaper=Business Standard India}} At the G20 Summit, India called for coordinated global fiscal stimulus to mitigate the severity of the global credit crunch.{{cite news|url=https://www.reuters.com/article/americasRegulatoryNews/idUSN1446531720081115|title=UPDATE 1-Indian adviser calls for coordinated fiscal stimulus | work=Reuters | date=2008-11-15|first=David|last=Lawder}} India said that it would inject US$4.5 billion into the financial system to help exporters.{{cite news|url=https://www.bloomberg.com/apps/news?pid=20601091&sid=ahkGnaZAux3s&refer=india|title=India May Announce Package for Exporters, Nath Says (Update1) | work=Bloomberg | date=2008-11-17}}

Some analysts pointed that India's growing trade with other Asian countries, especially China, will help reduce the negative impact of the crisis.{{cite news|url=http://news.bbc.co.uk/2/hi/south_asia/7733797.stm|title=China and India and world recession.

| work=BBC News | date=2008-11-17 | access-date=2010-01-05 | first=Kaushik | last=Basu}} Analysts also said that India's high domestic demand and large infrastructure projects will act as a buffer reducing the impact of the global downturn on its economy.{{cite news|url=https://www.bloomberg.com/apps/news?pid=20601091&sid=anT08lWTqguk&refer=india|title=India's New Roads May Buffer Economy From Recession (Update2) | work=Bloomberg | date=2008-11-19}} Economists argued that India's financial system is relatively insulated and its banks do not have significant exposure to subprime mortgage.{{cite web|url=http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName=HomePage&id=1cfb09f7-2c83-4826-9e04-b18fc10dafed&&Headline=%27India+could+benefit+from+global+economic+meltdown%27|title=India could benefit from global economic meltdown}}{{dead link|date=August 2021|bot=medic}}{{cbignore|bot=medic}} In an editorial, the New York Times praised the strong regulations placed on the Indian banking system by the Reserve Bank of India.{{cite news|author=Joe Nocera |url=https://www.nytimes.com/2008/12/20/business/20nocera.html?pagewanted=1&_r=1&em |title=Talking Business - Avoiding a Financial Collapse, Indian-Style |location=India |work=The New York Times |date=2008-12-23 |access-date=2009-01-04}}

In May 2009, India reported an economic growth rate of 5.8%, beating most forecasts.[https://web.archive.org/web/20101208230854/http://www.google.com/hostednews/afp/article/ALeqM5hXx0bRRIygHac3I-s5wYlxHwQLXQ India economic growth beats forecasts] In second quarter of 2009 the Indian economy grew by 7.9% and gave indications that the Indian economy would scale a growth rate of 7% or above in 2009 and 8-9% in 2010. In the 3rd Quarter of 2010, the economy had bounced back with a growth rate of 8.8%.

In Pakistan the central bank's foreign currency reserves, when counting forward liabilities is said to only amount to as little as $3 billion, sufficient for a single month of imports. Corruption and mismanagement have combined with high oil prices to damage Pakistan's economy. Pakistan's rupee has lost more than 21 per cent of its value in 2008 and inflation is at 25 per cent. The government has failed to defer payments for Saudi oil or raise favorable loans. President Asif Ali Zardari claimed Pakistan needed a bailout worth $100 billion which he was expected to ask for at a meeting in Abu Dhabi in November. Ratings agency Standard and Poor's rates Pakistan's sovereign debt at CCC +, only a few ratings above the default level, warning the country may be unable to cover about $3 billion in upcoming debt payments.{{cite news|url=https://www.telegraph.co.uk/finance/financetopics/financialcrisis/3147266/Pakistan-facing-bankruptcy.html|archive-url=https://web.archive.org/web/20081007093145/http://www.telegraph.co.uk/finance/financetopics/financialcrisis/3147266/Pakistan-facing-bankruptcy.html|url-status=dead|archive-date=2008-10-07|title=Pakistan facing bankruptcy|publisher=Daily Telegraph|last=Wilkinson|first=Isambard|date=2008-09-16|access-date=2008-09-16 | location=London}}

This led a change in economic managers, and politically elected finance minister Naveed Qamar was replaced by a financial advisor, Shaukat Tareen, a former banker belonging to Citigroup on October 8, 2008. The new finance advisor led the Pakistani delegation to IMF-World Bank meeting in USA with a hope to obtain a loan from the World Bank which has been stopped now due to reservations from IMF on World Bank for releasing this nature of Loan to any country.

{{Unreferenced section|date=December 2008}}

Sri Lanka too is affected with the global recession, as the demand for their major products such as garments, tea, rubber, coconut based products and agricultural products are at a downturn. At the moment, tea is severely affected and the country is experiencing 35% drop in the exports presently. Also, the tourist industry has downsized; last year, there was a 7% downsize to the industry, primarily due to the loss of European tourists.

{{reflist|colwidth=30em}}

• [http://www.ilo.org/public/english/support/lib/financialcrisis/ ILO Job Crisis Observatory]

{{Economic Crisis}}

{{United States–Commonwealth of Nations recessions}}

A01

Category:Economy of Asia

Category:2000s in Asia

Category:2010s in Asia

Category:Economic history of Asia