The Tigers Roar Once More

Ten years after the crash, Asian tigers are roaring with life. The Asian Development Bank in its annual outlook notes that the region – Asia excluding Japan and Australasia – grew at its fastest pace in 11 years in 2006. With a marginally more modest growth forecast of 7.6-7.7 per cent this year and next.

Growth would appear to be on a sounder footing this time round. Asian central banks have accumulated vast foreign reserves to cushion against future crises: developing Asia is sitting on a $2,300bn kitty. The regional current account surplus was a record 5.3 per cent of GDP last year. Fixed exchange rates have mostly been consigned to the history books, with the main exception of China which keeps the renminbi on a tight leash. That has given greater freedom to central bankers, who have largely succeeded in keeping inflation in check – although the battle is far from over in South Asia. See original article