Asia hopes for European dragons, not rabbits
December 19, 2011 at 16:30
This is a re-posted article
In 2012, Europe will surely leave its mark on the economies of Asia–for all the wrong reasons.
With the outlook for Europe hanging in the balance, Asia’s exporters are anticipating continued weaker demand from one of their main customers. Most exposed will be smaller trading hubs like South Korea, Hong Kong and Taiwan. In 2010, exports were equal to 45% of South Korea’s gross domestic product, with Europe the second biggest customer.
Regional powerhouses China, Japan and India will also take a hit. Ten years after joining the World Trade Organization, China is most exposed. Exports were equal to 26% of GDP in 2010 and Europe the biggest destination. In general though, a larger domestic market means the big three are less vulnerable to a slowdown in foreign demand than their smaller neighbors.
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Source: Wall Street Journal, December 12, 2011
