Are Asian economies bottoming out?
A recent rise in shipments for Taiwan and Singapore and a growth in exports for Vietnam, South Korea and Thailand have lead analysts to think the worst for Asia might be over. The decline in exports of most Asian nations eased in February as regional trade resuscitated for South Korea, Taiwan, Singapore and Vietnam. Nonetheless, economists warn of being over optimistic. The trade numbers could be misleading due to several factors. One reason could be that the week long lunar new year holiday celebrated in Korea, China, Taiwan and Vietnam fell in January this year, rather than February like last year. Another reason could be that the effect of stimulus packages, export incentives, lowered interest rates and duties is finally paying off as companies increase liquidity. Currency fluctuations are a third reason economists feel the deceleration in the drop in exports should not be taken too seriously. Falling Asian currencies like the won & rupee have been further aiding exports. In local
