Slowdown in Asia ex-Japan
In Asia ex-Japan1 , growth held up well in the first half of 2008 supported by firm domestic demand, due to the relatively strong balance sheet of households and businesses as well as increased incomes accruing to the region's commodity producers.
Nonetheless, the global downturn exacted a heavy toll on Asia's trade-reliant economies in Q4 2008 and Q1 2009. For the region as a whole, exports fell by 47% from the peak in July 2008 to the trough in February 2009.
The increasing significance of cross-border production networks within the region is likely to have exacerbated the depth of export decline during this period. (See Box Story 1)