Living Information

KAREN KOH, CNN Anchor: The global economic downturn is being felt very hard in Asia. Countries are limping into recession as exports slump and consumer sentiment falters. Many governments are trying to boost their economies with extra spending, this after the Asian financial crisis three years ago. Phil O’Sullivan compares then and now.

Phil O’SULLIVAN, CNN Correspondent: The Asian economic crisis saw stock markets plunge, currencies lose value and fortunes vanish. This year has seen similar symptoms but over a longer period, as countries stumble towards recession and record unemployment levels.

RUSSELL YEOMANS, Recruiter, TMP Worldwide: I would say it feels worse now, it feels deeper now, umm, and it feels more broadly across all industries.

O’SULLIVAN: The Asian economic crisis was a genuinely homegrown affair, a short, sharp jolt that shook up fragile Asian banking systems. This time round, the problem is more drawn out, and caused by a U.S.-led global downturn. The United States stood firm throughout the late 90s, much to the relief of Asian export-based economies. This time, the U.S. is part of the problem rather than the solution, but Asian banks are now much healthier.
Countries like South Korea were hard hit last time but are doing better now. While Taiwan escaped the worst of the fallout in ‘97, it’s now in recession and has record unemployment. Countries like Thailand or Japan are not in recovery either. But consumers across the region are not hoarding their money. Asia is now dependent on a recovery in the U.S. If the downturn continues, things could still get worse.

IAN PERKIN, Hong Kong Chamber of Commerce: I don’t think we really know whether this recession is worse than the last one until the first quarter or second quarter of next year.

O’SULLIVAN: In the Asian economic crisis of 1997, there was a feeling of genuine panic. That’s missing this time round, but some say sentiment is actually gloomier. This year the pain has gone on longer and there’s no end in sight. Phil O’Sullivan, CNN, Hong Kong.