Asia Pacific economic outlook – March 2009 |
The March 2009 edition of the Asia Pacific economic outlook highlights the major points from the ADB’s Asian Bond Monitor (Q1 2009) on emerging East Asian local currency bond markets and gives a near-term outlook for Australia, Indonesia, Philippines, and South Korea.
- Australia – The economy contracted unexpectedly in the last quarter of 2008 and companies have suffered their worst losses in six years. The government has announced a stimulus plan to counter the slowdown. The central bank did not cut rates in March but are likely to resume cuts in the coming months.
- Indonesia – Exports have been falling sharply in the past few months and this is taking a toll on the manufacturing sector and negatively impacting the economy. The government has announced a $6.1 billion stimulus plan while the central bank has cut rates three times in 2009 alone and will likely continue to make further cuts.
- Philippines – The economy grew better than expected in the last quarter of 2008 because increased remittances boosted personal consumption. This good fortune is unlikely to last in 2009. The government has proposed a $2.1 billion stimulus plan while the central bank has been cutting rates and will likely continue to cut.
- South Korea – The economy has gone into a recession and 2009 is going to be a bad year. All sectors have suffered badly. The government has a stimulus plan in place but consumers with high levels of debt may not spend. The central bank will likely continue to cut rates but it is fast running out of space.
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Asia Pacific economic outlook - March 2009
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