Rosenberger, Leif

Introduction
At first glance, Asia appears to be enjoying a strong economic recovery. Most of the Asian economies have bounced back from the downturn following the Asian economic crisis. In fact, some of the Asian economies have actually shown accelerating economic growth in recent months. Unfortunately, this bounce-back is not durable. The economic drivers that lifted these economies out of recession in 1998 are already losing their punch. At a minimum, the region will likely experience an economic slowdown in 2001 due to a spike up in oil prices, political instability and weaker US economic growth. In addition, the day of reckoning for incomplete corporate and financial reforms is here. Asian stock markets and foreign exchange rates have already plummeted. This new economic volatility in Asia could even deteriorate into a worst case scenario of boom and bust scenario unless Asian leaders get more serious about reform and make their economies less vulnerable to financial turmoil.
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