Some days ago, market us lighten up with new hopes that emerged across worldwide with the release of the company’s earnings reports and fundamentals showing improvement globally. But still there are many nations which still can't deny their economic downfall. I believe we are experiencing the worst financial and economic crisis ever hit the world since WW II, yet the consequences are still left to be seen. Lots have being talked about this on online forex blogs and forums.
Looking at the Asian Impact of this crisis, China one of the biggest and powerful nation of Asia, is expecting to see the slowest growth rate in 10 years due to the global recession and also expecting diminishing demand following to the export sector to collapse. As we all know that China is an export oriented nation, with this collapse of its main driver of economic growth it is definite to watch incredible slowdown in the near future.
I have read in many forex online market reviews that they forecasts to see a growth rate near 6% in the first quarter. Although this level has never being witnessed in a decade but I think China should be happy about it that at least this nation is experiencing growth rather than retrenchment.
Singapore is facing similar situation with the expectations of economist and general public that the economy would shrink within a range of 6- 9% this year, recording the largest contraction seen in last 44 years, as the demand world exports continue to fall. It is seen in the reports that the exports of this nation has fallen for 11 consecutive months, thus forcing the central bank to interfere in the matter and lowering the trading range for the Singapore dollar for the first time since 2003.
Elaborating more on exports, Indian export figures collapsed the worst in March as it fell 21% from last year compared to the 21.7% fall recorded in the February following the abroad sales to hit $170 billion which is below the expected target of $200 billion.
I read on the Daily FX magazine that the Bank of Japan Governo, Masaaki Shirakawa was worried today and said that that despite the signs of recovery, they should remain "cautious". He believes that business investment and consumer spending will continue to weigh upon the economy as they are seen to slow down further. Also added that the economy has considerably worsened since the beginning of the year on slumping exports demand.
