Asian Development Outlook 2011: South-South Economic Links by Asian Development Bank

By Asian Development Bank

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Germany To sum up, developing Asia—the PRC in particular— Japan provided much-needed support to the global recovery as a major United States market for the world’s products around the crisis. Demand in -8 0 8 16 24 32 % the region had itself been supported by the unprecedented fiscal Source: ADB calculations based on data from International Monetary Fund. stimulus that authorities rolled out in the face of collapsing Direction of Trade Statistics. February 2011; and CEIC Data Company (accessed 15 March 2011).

2 Income from tourism and remittances generally increased as 0 2008 09 10 11 12 the global economic performance improved. 1%) Source: Asian Development Outlook database. and zero to slight growth in most of the small Pacific islands. 4% in 2012. Pacific inflation is also picking up alongside global commodity prices as these import-dependent countries cope with rising world food and oil prices. 6% in 2012. 7). Rising commodity % of GDP prices, especially for oil, and the region’s strong GDP growth 40 are raising its imports.

The baseline medium-term outlook is still grounded on 400 adequate spare capacity, bolstered by expansion of global output 300 until the middle of this decade. The risk in that period of a 200 sharp escalation is modest. Japan’s disaster may, however, have 100 medium-term ramifications if it leads to a significant shift of Jan Jan Jan Jan Jan Jan 2006 07 08 09 10 11 global energy demand from nuclear power to oil. 23). The world witnessed a similar commodity boom immediately before the global crisis.

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