Economic Terms
Asian Economic Recovery
Solid But Inflation A Risk
(http://www.bbc.co.uk/news/business-12973675)
6 April 2011 Last updated at 05:55 GMT
Asia's developing economies are expected to grow by just under 8% in 2011, according to the Asian Development Bank (ADB).
In its annual Asian Development Outlook it predicted that the region would expand solidly over the next two years.
However, growth rates would be slower than in 2010, it said.
And it warned that inflation would pose a challenge for many Asian countries and could lead to social tensions.
The ADB also said that stronger economic links between developing countries could offset reduced demand for goods and services from recession-hit richer countries.
"Developing Asia, having shown resilience throughout the global recession, is now consolidating its recovery and rapid expansion in the region's two giants - the People's Republic of China and India - will continue to lift regional and global growth," said Changyong Rhee, the ADB's chief economist.
Asia, excluding Japan, would grow by 7.8% in 2011 and 7.7% in 2012, down from 9% in 2010 when the region rebounded strongly from the global financial crisis, ADB predicted.
Mr Rhee said despite some short-term trade disruption, he expected last month's earthquake in Japan to have a minimal effect on the region as a whole.
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�Start Quote
Developing Asia is home to two-thirds of the world's poor and it is they who are most vulnerable to the effects of price increases�
End Quote Changyong Rhee Asia Development Bank
He added that some countries could benefit from increased demand from Japan for construction materials as the country begins to rebuild the areas devastated by the quake.
"Under the assumption there is no further deterioration in the nuclear situation, I really don't think the impact will be that great,"
China and India would continue to drive the global and regional economic recovery, the ADB said.
But, like the rest of the region, the two countries would see slower rates of growth than last year, it added.
Economic growth in China was expected to moderate to 9.6% from 10.3% in 2010 as tighter monetary policy takes effect and as demand for exports in major markets such as the US and Europe remained sluggish.
India's economy was expected to expand by 8.2% in the year to March 2012, down from an expected 8.6% in the year to March 2011.
Tackling inflation
Mr Rhee said that inflation would be a headache for policy makers in the region as geopolitical tensions in the Middle East and the nuclear crisis in Japan had raised expectations of higher oil prices.
The report said that countries could not rely on tighter monetary policy alone to tackle inflation, but might also have to consider more flexible exchange rates.
Inflation in the 45 Asian economies covered by the report was forecast to rise to 5.3% in 2011, from 4.4% in 2010.
"Developing Asia is home to two-thirds of the world's poor and it is they who are most vulnerable to the effects of price increases," said Mr Rhee.
The report also warned that inflation, especially if driven by food prices, could exacerbate inequality and lead to social tensions.
With Europe, the US and Japan still struggling to recover from the effects of the global financial crisis, the ADB said the region would need to look to other developing countries to foster economic growth.
"Growing South-South relations at a time of modest growth in industrial economies could be a potential new driver of global growth," said Mr Rhee.
"But only if these economies become more open to trade and capital flows with each other."
Economic Terms
Inflation : a general and
progressive increase in prices; "in inflation everything gets more
valuable except money" [syn: {rising prices}]
[ant: deflation, disinflation]
Persistent expansion or increase in the general level of prices, usually caused
by overissue of currency, and resulting in a reduced
value of the currency. It is contrasted with deflation, and is when it
occurs to a very high degree is called hyperinflation.
Demand : 1: request urgently and
forcefully; "The victim's family is demanding compensation";
"The boss demanded that he be fired immediately"; "She demanded
to see the manager"
recession �:
(Economics) A period during which economic activity, as measured by gross
domestic product, declines for at least two quarters in a row in a specific
country. If the
decline is severe and long, such as greater than ten percent,
it may be termed a depression.
the state of the economy declines; a widespread decline
in the GDP and employment and trade lasting from six months to a year.
Expantion : an increase in the production of goods and services
over time, and in the volume of
business transactions, generally associated with an increase
in employment and an increase in the money supply. Opposite
of contraction.
consolidating : unite into one; "The companies
consolidated".
expectations : the sum of the values of a random variable divided by
the number of values [syn: arithmetic mean, first
moment, expected value]
markets : the world of commercial
activity where goods and services
are bought
and sold; "without competition there would be no market"; "they were driven from the
marketplace"
[syn: marketplace]
exports �: commodities (goods or services) sold to a foreign country
Istilah Ekonomi
Inflasi: peningkatan secara umum dan
progresif dalam harga; "dalam segala hal inflasi
akan lebih berharga selain uang" [syn: {kenaikan harga}] [ant: deflasi, disinflasi]
ekspansi persisten atau peningkatan tingkat harga umum,
biasanya disebabkan oleh overissue mata uang, dan
mengakibatkan menurunkan nilai mata uang.
Hal ini kontras
dengan deflasi, dan bila terjadi
pada tingkat yang sangat tinggi disebut
hiperinflasi.
Demand : 1: permintaan mendesak dan tegas;
"Keluarga korban meminta ganti rugi";
"Bos menuntut agar ia dipecat segera";
"Dia menuntut untuk melihat manajer"
recession: (Ekonomi) Masa selama
kegiatan ekonomi, yang diukur dengan produk
domestik bruto, penurunan paling sedikit dua triwulan berturut-turut
di negara tertentu. Jika
penurunan parah dan panjang, seperti
lebih besar dari sepuluh persen,
ini mungkin disebut depresi.
keadaan ekonomi
menurun, penurunan luas dalam GDP dan lapangan kerja
dan perdagangan yang berlangsung dari enam bulan sampai
satu tahun.
Expantion: peningkatan produksi barang dan jasa dari
waktu ke waktu, dan dalam
volume
transaksi bisnis, umumnya terkait dengan peningkatan lapangan kerja dan peningkatan jumlah uang beredar.
Lawan dari kontraksi.
consolidating : bersatu menjadi satu; "Para perusahaan yang dikonsolidasi".
expectations : jumlah dari nilai-nilai dari suatu variabel
acak dibagi dengan jumlah nilai
[syn: mean aritmatika, saat pertama, nilai
harapan]
markets : dunia
kegiatan komersial di mana barang
dan jasa yang dibeli dan dijual;
"tanpa persaingan pasar tidak akan
ada"; "mereka diusir dari pasar"
[Syn: pasar]
exports
: komoditi (barang atau jasa) yang dijual ke luar
negeri