Monetary Authority of Singapore Annual Report 2010/2011
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Strong Growth in Asia ex-Japan was Underpinned by the Private Sector

During the course of 2010, the faster growing Asia ex-Japan economies transited to a more advanced phase of the business cycle, driven primarily by the private sector. In spite of waning fiscal support measures and tighter monetary policy in the region towards the year-end, growth in the Asian economies accelerated to 8.1% in 2010, up from 2.1% in 2009.

The rapid expansion in Asia ex-Japan was led by robust intra-regional export demand, especially in the electronics manufacturing sector, as IT firms sought initially to replenish depleted inventories and later to satisfy increased final demand. Personal consumption and investment were particularly strong in the domestic-oriented economies of China, India and Indonesia.

However, private demand in the smaller and more trade-oriented economies also picked up, as the effects of the export boom and higher commodity prices trickled down to households and spurred domestic consumption.