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Today's Date: 21 September 2014
Last Updated: 18 September 2014 18:38:47 EST
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Thailand exits recession

 

Taiwan and Thailand exited recession last quarter and Malaysia probably followed, as Asian economies lead the global recovery.

Asian economies are paving the way for a global recovery from the worst worldwide recession since the Great Depression after central banks in the region slashed interest rates to record lows and governments increased spending by more than $1 trillion.

The strength of Asia’s rebound has seen policy makers lead the way in withdrawing stimulus.

“Asia’s recovery is at least two quarters ahead of the U.S. and monetary authorities have been contemplating exit strategies for some time,” said David Carbon, head of economic and currency research at DBS Group Holdings Ltd. in Singapore.

“With higher U.S. rates on the cards, Asia’s central banks can pursue their exit strategies with less to fear on the inflow and currency front.”

Policy makers in China, India and Vietnam are tightening monetary conditions amid signs that accelerating growth is fuelling inflation and may led to asset bubbles.

The U.S. Federal Reserve, which increased its discount rate by a quarter point to 0.75 per cent on 18 February, has left its benchmark policy rate unchanged for more than a year.

The emergence of the world economy from the global recession is encouraging companies in Asia to boost production and hire more workers.

Singapore last week raised its economic growth forecast for 2010, predicting an expansion of as much as 6.5 per cent this year.

Taiwan’s fourth-quarter economic growth was the strongest since June 2004 and Thailand’s increase in GDP was the most in seven quarters.

 
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