Source: Financial Times                    Date: 08 September, 2011

Evidence of a drop in manufacturing activity and construction projects in nations throughout Asia may suggests those economies are slowing down. Although two reports showed a small increase in production last month, it is unclear if China is growing or shrinking.

Data published in a recently periodical supported the warnings of economic experts that Asia has not completely isolated from the global economic slowdown. Data regarding South Korea, Taiwan, and Japan showed that economic activity was sliding down in all those nations. Financial crisis and the lagged effects of interest drove government to raise interest rates to fight inflation.

“Now that the western world is teetering on the brink of recession the outlook has dimmed further,” said Robert Piror-Wandesforde, Asia economist at Credit Suisse in Singapore. “Unfortunately, there is little to suggest that large parts of Asia remain anything other than highly susceptible to growth developments in the U.S. and Europe”.