Taiwan, Thailand exit recession in the last quarter

TAIPEI: The Taiwan and Thailand exited recession last quarter and Malaysia probably followed, as Asian economies lead the global recovery. Taiwanese gross domestic product rose 9.2% in the fourth quarter from a year earlier and the Thai economy expanded 5.8%, according to reports on Monday. Malaysian figures for the three months to Deccember 31, due for release on February 24, may show GDP increased 3.4% last quarter.

Asian economies are paving the way for a global recovery from the worst worldwide recession after central banks in the region slashed interest rates to record lows and governments increased spending by more than $1 trillion. The strength of Asia’s rebound has seen policy makers lead the way in withdrawing stimulus.

“Asia’s recovery is at least two quarters ahead of the US and monetary authorities have been contemplating exit strategies for some time,” said David Carbon, head of economic research at DBS Group in Singapore. “With higher US rates on the cards, Asia’s central banks can pursue their exit strategies with less to fear on the inflow and currency front.”