While many analysts predicted a significant impact of the European crisis and global uncertainty on emerging Asian economies, the World Bank is thinking about reducing the problem.
Indeed, the international institute confirms that the global recession (in particular the European debt crisis and US stagnation) will indeed have some impact on emerging Asian economies, including China which boasts high growth rates and which will not be free from a slowdown in activity , but the effects will not be so devastating.
The weak international demand, which is slowing down exports, contributes to slowing down the markets of the Far East, and the authorities of China and India, for example, are trying to stimulate more and more domestic demand. The production of many fast-growing Asian countries - underlines the World Bank report - has suffered the impact of the slowdown in exports, but the recent diffusion of a middle class capable of stimulating domestic consumption will be able to mitigate the negative consequences.
It's on the other hand, excluding possible financial stress, thanks to large reserves and high current surpluses, which compensate for the lower flow of capital from the West. The World Bank, however, still anticipates growth of 8,4% for China and 7,8% for the entire area of East Asia for the coming year.
