- Posted September 1, 2012 by
This iReport is part of an assignment:
Economy: Are you better off?
The Asian Market: Boom or Simple PR?
The economy of Asia - This is commonly known speech today according from many reasons and from this all is 1 reason and it's a Boom market name. After 2006 year was the period in which the Asian stock markets saw unprecedented gains of the kind rarely been witnessed before. The stock markets of China, Hong Kong, Singapore, India, Indonesia, Malaysia, New Zealand and Vietnam hit record highs while the laggards like Japan, South Korea and Taiwan also posted muted though respectable gains. With this state of affairs, it was perhaps unsurprising that there was a huge scramble by global investors to flock to the Asian markets just hoping to reap some of the big rewards for themselves. However, some people feel that the amazing growth of these stock markets needs to be tempered with a healthy dose of caution since the nightmarish memories of the 1997-meltdown of the region’s equity markets just refuse to die out. This has raised a few doubts among analysts studying the region very carefully and has prompted many to be sceptical about the potential growth prospects of these markets in the future. It was high and fatests growthing opportunities for China, India, Malaysia, Vietnam and they reached to good step but problem in this was one main point: Growth GDP but not had progress in people's pocket. And here i have question it was a hard boom or only good managed PR? Today rate of GDP growth in Asian countries is high as it was in past but in several month ago there was problem in China with rising inflation and crises in bank institutions. How looks it today?
Asian GDP % in 2012 year:
China - 9.8 %
India - 18.8 %
Hon Kong - 6 %
Qatar - 18.7 % and other country rates is below to 6-7 %
From thi list we an see some problems and unreal information in India. India GDP growth in 2012 year is 18.8 % but India as a nation is faced with massive problem of unemployment. Total rate of unemployment in india is with official information from India: 9-10 % but for other informations this % reachs to 20-25 %. Cost of living is low, prices are low and how can develop GDP in this situation? It's can only in paper. Situations in China and Hon Kong are different instead India because this lasts economic policy are different than other asian countries. In China, during 2006 stocks in the home market sizzled, at long last reflecting the country’s gathering economic might after years of paltry returns. The MSCI China A, an index of domestically listed stocks, soared 128%.1 The scenario was also quite rosy in India when the Bombay stock exchange rocketed another 46.7% in 2006.2 Elsewhere in the region, markets bolted ahead on sound economic fundamentals, with markets in Indonesia, the Philippines and Singapore returning 55.3%, 42.3% and 27.2%, respectively.3 Even the so-called stragglers, Taiwan and Malaysia, clocked returns of 19.5% and 21.8% in 2006, a reflection of just how turbo-charged the growth trend has been. The only disappointments were South Korea which rose by a modest 4% last year and Japan, which contrary to expectations managed to end the year up by only 6.9%. This is creditable given that these enormous returns occurred despite a plunge in the region’s stock markets during May and June, when foreign investors were spooked by the prospect of rising interest rates and fled riskier assets.4 With massive investor confidence and huge amount of global liquidity prevalent in the region, it is no wonder that there has been a mad rush by global investors to invest in the region. But today China has real estate crises, prices are high, investment opportunities are low. Start business in China is problematic according from minimum capital requirements and this problem is also faced in Hon Kong, which has more liberal and free market than China. But between to this both we can see much common in many aspects.
And what is a main factors driving the growths?
|Population||4.2 billion (60% of the world)|
|GDP||Nominal: US$18.515 trillion (2010)|
PPP: US$24.077 trillion (2010)
|GDP growth||Per capita: 7.9% (2010)|
|GDP per capita||Nominal: US$4,629 (2009)|
PPP: US$7,041 (2009)
|Millionaires (US$)||3 million (0.06%)|
|Unemployment||3.8% (2010 est.)|
Many changes have transformed the domestic economies of the Asian region radically over the last decade. Many market watchers believe that these emerging economies are on a much surer financial footing than in the past. Many have pared their deficits, increased their reserves and reduced their dependence on exports to the U.S., thereby decreasing their vulnerability to a potential economic slowdown there.5 Some investors believe that these countries are finally beginning to decouple from the US economy either by trading more among themselves or relying more on local consumer demand.6 However, the skeptics discount this hypothesis and consider it too early to draw conclusions. A slow US economy could still trigger a region-wide recession in the near future.
And in last The Asian Market: Boom or Simple PR?
My answer is: Both in some aspects.
By Personal Financial and Investment Consultant Irakli Berdzenadze