The recession in South Asia

Asian Development Bank is headquartered in Mandaluyong City, Philippines.

Bangladesh

Bangladesh economy is not effected by the global recession. Bangladesh's economic growth and exports remain quite strong.^[1]

India

India's economy is expected to grow about 5.1% in 2009 and 6.5% in 2010 according to the IMF.The policymakers informed a visiting IMF senior executive Thursday that ^[2] India's economy grew at an annual rate of 9% or more in the past three years, second only to China among the major economies, and the projections for FY2008 indicate that India's economic growth has been affected by the economic crisis.^[3] The former Indian Finance Minister P. Chidambaram, however, said that he expected India's economy to "bounce back" to 9% during FY2009.^[4] This prediction has been met with skepticism by observers.^[2][5] The Asian Development Bank predicted India to recover from weakening momentum in 4-6 quarters.^[6] At the G20 Summit, India called for coordinated global fiscal stimulus to mitigate the severity of the global credit crunch.^[7] India said that it would inject US$4.5 billion into the financial system to help exporters.^[8] Some analysts pointed that India's growing trade with other Asian countries, especially China, will help reduce the negative impact of the crisis.^[9] Analysts also said that India's high domestic demand and large infrastructure projects will act as a buffer reducing the impact of the global downturn on its economy.^[10] Economists argued that India's financial system is relatively insulated and its banks do not have significant exposure to subprime mortgage.^[11] In an editorial, the New York Times praised the strong regulations placed on the Indian banking system by the Reserve Bank of India.^[12]

Pakistan

In Pakistan the central bank's foreign currency reserves, when counting forward liabilities is said to only amount to as little as $3 billion, sufficient for a single month of imports. Corruption and mismanagement have combined with high oil prices to damage Pakistan's economy. Pakistan's rupee has lost more than 21 per cent of its value in 2008 and inflation is at 25 per cent. The government has failed to defer payments for Saudi oil or raise favorable loans. President Asif Ali Zardari claimed Pakistan needed a bailout worth $100 billion which he was expected to ask for at a meeting in Abu Dhabi in November. Ratings agency Standard and Poor's rates Pakistan's sovereign debt at CCC +, only a few ratings above the default level, warning the country may be unable to cover about $3 billion in upcoming debt payments.^[13] This led a change in economic managers,and politically elected finance minister Naveed Qamar was replaced by a financial advisor, Shaukat Tareen, a former banker belonging to Citigroup on October 8, 2008. The new finance advisor led the Pakistani delegation to IMF-World Bank meeting in USA with a hope to obtain a loan from the World Bank which has been stopped now due to reservations from IMF on World Bank for releasing this nature of Loan to any country.

Sri Lanka

Sri Lanka too is affected with the global recession, as the demand for their major products such as garments, tea, rubber, coconut based products and agricultural products are at a downturn. At the moment, tea is severely affected and the country is experiencing 35% drop in the exports presently. Also, the tourist industry has downsized; last year, there was a 7% downsize to the industry, primarily due to the loss of European tourists.

References

This guide is licensed under the GNU Free Documentation License. It uses material from the Wikipedia.

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