The global economic crisis that has gripped the United States is beginning to show its affects in Asia, the Globe and Mail reports.
China and India have recorded slower manufacturing growth for July, and Taiwan and South Korea have both experienced less demand for exports and Japan posted its worst economic performance since last year’s tsunami. The region, which is heavily dependent on American and European demand for Asian products, has only recently begun to experience a reduced demand for Asian exports, although many western economies have been mired in a debt crisis since 2008.
Domestic economies within Asia have also been slowing. While Beijing has made an effort to grow business by cutting interest rates, the Chinese economy continues to shrink, and by extension, bring down the economies of their Asian trading partners. In June, the Chinese government said it would stimulate the economy with increased investment, but on a smaller scale than the stimulus of 2009-2010.
India also saw manufacturing growth slow in July as a result of widespread power outages. Indonesia, however, defied the regional trend and posted a nine-month high in manufacturing growth.