The Effects of the Euro Crisis on Asia
Introduction
In this essay I will explain the different effects of the euro zone debt crisis on some of the Asian countries. These countries include China, Indonesia, India, Malaysia, the Philippines, Singapore, Thailand, Vietnam, Japan and Taiwan.
My aim is to cast light on both the negative and positive impacts of the crisis. I will try to reveal the negative effects for Asian countries, and the inconveniences what these effects cause to Europe as well.
It is important to examine what kind of role Asia has in these turbulent times, because this helps us understand the actual situation, and it also helps to forecast what would happen in the future, in order to prepare economically. It also makes us able to learn from the crisis, to learn what are the possible ways of successfully react to the changing economic environment.
1. The Negative Effects of the Crisis
In this chapter I will focus on the negative impacts of the debt crisis. I will write about the disadvantages for both Europe and Asia.
1.1 Slower Growth of Asian Countries
In this chapter I will try to assess those factors which mean possible threats for the Asian countries’ economies.
First of all we should examine the risks coming from the direct losses of Asian investors on eurozone assets. We can say that it is not the most dangerous threat for the Asian countries. Their investments held in euro are just a small percent of all their investments. Hong Kong and Singapore are the ones who are most at risk from this factor, but even if their external assets would suffer losses, the damage caused to Asia wouldn’t be serious. (Emerging Markets Monitor., 2011.) According to Zhang Zhixiang, a former head of the People 's Bank of China international department, and Zhang Chao, an economist for the China Development Bank, the euro crisis will not have as serious impact on China’s economy as the U.S. debt downgrade, because as they wrote: “euro assets make up far less of our country 's foreign
In this essay I will explain the different effects of the euro zone debt crisis on some of the Asian countries. These countries include China, Indonesia, India, Malaysia, the Philippines, Singapore, Thailand, Vietnam, Japan and Taiwan.
My aim is to cast light on both the negative and positive impacts of the crisis. I will try to reveal the negative effects for Asian countries, and the inconveniences what these effects cause to Europe as well.
It is important to examine what kind of role Asia has in these turbulent times, because this helps us understand the actual situation, and it also helps to forecast what would happen in the future, in order to prepare economically. It also makes us able to learn from the crisis, to learn what are the possible ways of successfully react to the changing economic environment.
1. The Negative Effects of the Crisis
In this chapter I will focus on the negative impacts of the debt crisis. I will write about the disadvantages for both Europe and Asia.
1.1 Slower Growth of Asian Countries
In this chapter I will try to assess those factors which mean possible threats for the Asian countries’ economies.
First of all we should examine the risks coming from the direct losses of Asian investors on eurozone assets. We can say that it is not the most dangerous threat for the Asian countries. Their investments held in euro are just a small percent of all their investments. Hong Kong and Singapore are the ones who are most at risk from this factor, but even if their external assets would suffer losses, the damage caused to Asia wouldn’t be serious. (Emerging Markets Monitor., 2011.) According to Zhang Zhixiang, a former head of the People 's Bank of China international department, and Zhang Chao, an economist for the China Development Bank, the euro crisis will not have as serious impact on China’s economy as the U.S. debt downgrade, because as they wrote: “euro assets make up far less of our country 's foreign
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