CONTENTS
HOME
OUR WORK
Managing Risks,
Emerging Stronger
TUMULTUOUS
YEAR FOR THE
GLOBAL ECONOMY
MONETARY POLICY
AN UNPRECEDENTED CRISIS
INTEGRATED
APPROACH TO
FOSTER SAFETY AND
SOUNDNESS OF
FINANCIAL
INSTITUTIONS AND
FINANCIAL SYSTEM
BUILDING ON OUR
FUNDAMENTALS,
PREPARING FOR
THE UPTURN
ENHANCING
OPERATIONAL
CAPABILITIES AND
RESILIENCE
CURRENCY AND
PAYMENT SYSTEM

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)



1 Asia ex-Japan comprises China, Hong Kong, Indonesia, Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand.