World Video | Defence | Foreign Affairs | Natural Events | Trade | NZ in World News | NZ National News Video | NZ Regional News | Search

 

Asian Governments Warned About Financial Downturn

UN Report Warns Asian Governments To Prepare For Financial Downturn

The United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) today warned the region’s governments to reduce exposure to the impact of a sudden or unexpected market downturn, urging a mood of protection and preparation rather than the celebratory atmosphere of current prosperity.

Asian countries have to stay alert despite the lull in financial markets recently, says UNESCAP in a new report, The Calm Before the Storm? Managing the Risks of an Asia-Pacific Financial Downturn.

“There are a number of new emerging risks which may lead to more stormy weather ahead,” the report warns, citing possible interest rates hikes in developed countries, oil price shocks, housing market overheating, and investor overreaction and contagion.

The region evokes bitter memories of the Asian financial crisis in 1997 but notes that countries of the region “are now in a stronger position to handle turbulence.” Governments have improved economic policies, depend less on portfolio flows, and have bigger foreign reserves and better banking sectors.

The report cautions that “as Asian economies are becoming more integrated into the global economy, they also face a higher risk from the constantly shifting global environment.” It calls for governments to focus on controlling inflation and debt, improving banking regulations, and monitoring complex financial products.

“Countries in the Asia-Pacific region must improve regional cooperation to lessen the impact of financial market volatility,” the report says, recommending strengthening existing regional cooperation schemes by making more funds available against disruptive capital movements, ramping up regional surveillance of country policies anῤ extending these schemes to more countries.

Ends

© Scoop Media

 
 
 
World Headlines

 

Rohingya Muslims Massacred: Restrictions On Aid Put 1000s At Risk

Amnesty: The Myanmar authorities’ restrictions on international aid in Rakhine state is putting tens of thousands of lives at risk in a region where mainly Rohingya people are already suffering horrific abuses from a disproportionate military campaign. More>>

ALSO:

Werewolf: Gordon Campbell On North Korea, Neo-Nazism, And Milo

With a bit of luck the planet won’t be devastated by nuclear war in the next few days. US President Donald Trump will have begun to fixate on some other way to gratify his self-esteem – maybe by invading Venezuela or starting a war with Iran. More>>

ALSO:

Victory Declared: New Stabilisation Funding From NZ As Mosul Is Retaken

New Zealand has congratulated the Iraqi government on the successful liberation of Mosul from ISIS after a long and hard-fought campaign. More>>

Gordon Campbell: On The Current US Moves Against North Korea

If Martians visited early last week, they’d probably be scratching their heads as to why North Korea was being treated as a potential trigger for global conflict... More>>

ALSO:

Gordon Campbell: On The Lessons From Corbyn’s Campaign

Leaving partisan politics aside – and ignoring Jeremy Corbyn’s sensational election campaign for a moment – it has to be said that Britain is now really up shit creek... More>>

ALSO:

 
 
 
 
 
 
  • Pacific.Scoop
  • Cafe Pacific
  • PMC