The speed and strength of developing Asia’s recovery from the global financial and economic crisis has been surprising. Although exports and economic growth plummeted during the fourth quarter of 2008 and the first quarter of 2009, the sizable fiscal and monetary stimulus programs quickly enacted by governments around the region initially supported aggregate demand and growth in the face of collapsing world trade. The
region’s resilient V- shaped recovery has gained depth and breadth as exports have recovered and private domestic demand has strengthened. What is all the more surprising is that the turnaround has taken place despite the continued fragility and uncertainty of the advanced economies. While it is far too early to tell whether Asia has decoupled from the business cycles of the advanced economies, the region’s robust performance is making a substantial contribution to the global outlook.