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Economic Recovery Likely to Begin in Asia

HONG KONG: The economy in Asian countries is showing signs of revival, according to The Economist. Parsing through various gross domestic production patterns, the financial publication predicts a rebound among smaller Asian economies, and modest growth in South Korea and China. The resulting growth rate in the region is expected to displace the United States in 2010.

“Thanks to a large fiscal stimulus and the healthier state of private-sector balance-sheets in most economies, domestic spending--consumption and investment--should revive earlier in emerging Asia than elsewhere, rising by perhaps 7 percent next year, up from 4 to 5 percent this year. America’s domestic demand is expected to remain weak in 2010 after falling sharply this year. Indeed, add in Japan and total Asian domestic spending--at market exchange rates--looks set to overtake America’s next year.”

The full article is available at The Economist.com (opens in new tab)