World Economy

Asian Economies in Stronger Position

Asian Economies  in Stronger PositionAsian Economies  in Stronger Position

Asian emerging economies, particularly Thailand and others in Southeast Asia, are considered to be in a stronger position financially than their global peers to weather risks from rising US interest rates, Bloomberg reported. Four of the top eight economies on a vulnerability index by Thailand’s Bank of Ayudhya Plc are from Southeast Asia, with only Indonesia falling lower down on the scale, according to a July 20 research note. Taiwan and Thailand take the top two slots in terms of financial health, with Turkey, Argentina and Venezuela rounding out the bottom of the index. Indonesia was No. 16. Thailand’s transition to a floating exchange rate regime since the Asian financial crisis two decades ago and greater trade with the rest of the world have put the economy in a stronger position, with “hefty” current-account surpluses in almost every year since then helping to boost foreign reserves, the bank said. Many central banks in the region have started raising interest rates this year as the Fed tightened policy, including Malaysia, the Philippines and India.


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