July 13, 2017 IMF Blog

Asia today is the fastest-growing region in the world, and the largest contributor to global growth. It has six members of the Group of Twenty advanced and emerging economies, and its economic and social achievements are well recognized.

But 20 years ago, July 1997 marked the beginning of the Asian Financial Crisis, when a combination of economic, financial and corporate problems triggered a sharp loss of confidence and capital outflows from the region’s emerging market economies. The crisis began in Thailand on July 2, when the baht’s peg to the dollar was dropped, and eventually spread to Korea, Indonesia and other countries.

The 20th anniversary of the Asian Crisis is a good moment to ask whether the region is better prepared today to address another major economic shock. I would offer a “Yes, by all means.” Of course, important vulnerabilities remain, especially the elevated levels of corporate and household debts in some countries. But the overall picture is one of greater resilience. Let me explain why. Den Rest des Beitrags lesen »