by Marie Kauna – EMTV Online, Port Moresby
Following Japan’s huge debt rates problem, and China now experiencing a slowing in economic growth, there are others within the Asia Pacific region who are, and will be affected by these falls.
In a recent report, Australia’s share market was predicted to drop by more than two per cent as a result of a plunging US market. However, economists have recommended the Australian economy is in a better shape to weather this threat.
Like Australia, Economist Emma Veve of the Australian Development Bank, said the Pacific region “is reasonably buffered from falling markets in China.”
Veve added that “the devaluation of the yuan eases the way for countries heavily reliant on imported fuel and concessionary Chinese loans.”
Papua New Guinea though will be forced to brace for a potential economic downturn.
Veve has urged that preparations should be made by Papua New Guinea as these slowing effects could hit the country hard.
When referring to countries relying heavily on imported fuel and concessionary Chinese loans, Veve said “the benefit for the countries will be with the devaluation of the exchange rate. These loans will be more affordable for the Pacific countries.”
This provides more opportunity for Pacific region, and will help countries to survive these difficult economic times.