According to the International Monetary Fund (IMF) Deputy Managing Director Mitsuhiro Furusawa, Asian economies have learned a lot in 20 years since the Asian Financial Crisis that started in July 1997 amid “sharp loss of confidence and capital outflows from the region’s emerging market economies.”
It spread from Thailand throughout Asia as a whole notably impacting Korea and Indonesia. Thanks to “strong reforms”, Asia addressed the root causes of the crisis and therefore proved more resilient when the 2008 global financial crisis hit hard in the West.
In just 20 years, Asian countries have become the fastest-growing region in the world and have more than rebounded often doubling their real GDP. Although it is facing new challenges like high leverage and rapid population aging, Asia is “by all means, better prepared today to address another major economic shock,” underlined Furusawa.