What did the Asian financial crisis affect?

The countries that were most severely affected by the Asian Financial Crisis included Indonesia, Thailand, Malaysia, South Korea, and the Philippines. They saw their currency exchange rates, stock markets, and prices of other assets all plunge. The GDPs of the affected countries even fell by double digits.

How did the Asian financial crisis affect Indonesia?

The East Asian financial crisis has set Indonesia’s development back many years. While growth in l995 was 8.2% and in 1996, the year before the crisis, was 7.8%, in l997 growth fell to 4.9%. But at least through 1997 growth was still positive. In l998, at the peak of the crisis, Indonesia’s economy contracted by l3.

How did the Asian financial crisis affect South Korea?

Korea was one of the last countries to be affected by the Asian Financial Crisis. The won dropped in value and a large investment panic in the state led to the eventual bankruptcies of chaebols that had borrowed huge amounts for their individual projects.

How did the Asian financial crisis affect China?

The decreasing demand for imports in countries hit by the crisis means a shrinking international market for Chinese exports. 5 Moreover, the dramatic devaluation of the region’s currencies means China faces increased competition not only in neighboring countries but also in the broader international market.

How was the Philippines affected by the 2008 world financial crisis?

The global financial crisis of 2008-2009 resulted in considerably slower economic growth in the Philippines as elsewhere in East Asia. The financial crisis partially overlapped with lingering effects of a major spike in international food and fuel prices which peaked in mid- to late-2008.

What caused the Indonesian crisis 1998?

Unable to stabilise the economy, the government sought assistance from the International Monetary Fund. The rupiah declined further to one-sixth of its original value by January 1998. With rising unemployment and inflated food prices, the public lost confidence in the government’s ability to turn the economy around.

How does IMF help Indonesia?

The IMF had given a positive assessment of the Indonesian economy a few months prior and suggested to improve existing rigid labor laws and reduce the influence of state-owned companies to improve the flow of foreign investment.

How did the global financial crisis affect South Korea?

The Korean economy contracted by 5.1 percent in the last quarter of 2008 from the previous three months. The capital account recorded a deficit of $42.6 billion in the fourth quarter of 2008, equivalent to 20 percent of GDP.

What caused the South Korean financial crisis?

Accordingly, the Korean financial crisis was caused by the overvalued Won encouraging excessive foreign borrowing and the ‘crony capitalism’ industry policy investing the loans for uneconomic purposes.

How did the global financial crisis affect China?

FDI in China decreased during the beginning of financial crisis and rebounded to almost the precrisis level later on. As shown in Table 2, China’s net FDI decreased to $121.68 billion and $70.32 billion in 2008 and 2009, dropping 15% and 42% year on year, respectively, and increased to $124.93 billion in 2010.

Why was China not affected by the 2008 financial crisis?

But in China the core of the financial system is not fragmented, but is a single integrated whole constituting central government, local governments, state banks, and large state owned companies. Resources are therefore not transferred by chaotic crisis, as in the West, but within this integrated financial system.

How did the global financial crisis affect Philippines?

Exports from developing countries fell sharply dragging many of them into the global economic downturn. The Philippines was not spared the fallout from the crisis as GDP growth decelerated considerably in the fourth quarter of 2008 and first half of 2009.