Just when I thought I was lucky to live in Busan, someone has to make me fear for a recession here too.

Despite an increase in domestic demand, Asia depends heavily on exports.

Most countries in the region continue to undervalue their currencies, making it difficult to move away from developed-world demand and toward domestic consumption. Stimulus spending has driven much of Asia’s blistering growth this year, but if America and Europe continue to face sluggish growth, no amount of fiscal or monetary pump-priming can prevent a slowdown.

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Filed under: Business/Economy, East Asia, Subscriptions Tagged: currency devaluation, decoupling