Assess the recent economic performance of the East Asian eco

Solution

East asian economies are facing slowdown these days espcially China is facing the worst GDP performance in the past 20-30 years. This is due to the record low commodity prices, strong dollar & sharp decline in emerging market currencies and global financial instability caused by mainly Eurozone debt crisis.

Over the past decade, China has been growth engine for the world economy, but now it is facing heat due to slowdown in developed economies due to which the demand for the china exports has declined sharply. Recently, China GDP growth fell to 7-8% growth rate which was said the lowest in the past 30 years and is likely to worsen further even though the government and central banks are taking various stimulus measures.

China slowdown and global financial instability has led to sharp decline in Chinese stocks and other global equity markets caused by nervousness in the minds of investors and doubts of the Chinese economic recovery.