What happened in the 1997 Asian financial crisis?

What happened in the 1997 Asian financial crisis?

The financial crisis started in Thailand in July 1997 after the Thai baht plunged in value. It then swept over East and Southeast Asia. As a result of the financial crisis, currency values, stock markets, and other asset values in many Southeast Asian countries collapsed.

What caused the financial crisis in Malaysia during 1997 and 1998?

Asian financial crisis 1997/98 The Asian financial crisis in 1997/98 is deemed as one of the worst economic crises Malaysia has ever faced (until now, that is). Its main cause, according to academics, was the wholesale adoption of financial deregulation in both capital accounts and the banking sector.

What marked the beginning of the 1997 Asian economic crisis?

On July 2, 1997, Thailand devalued its currency relative to the U.S. dollar. This development, which followed months of speculative pressures that had substantially depleted Thailand’s official foreign exchange reserves, marked the beginning of a deep financial crisis across much of East Asia.

Was there a recession in 1997?

Unsourced material may be challenged and removed. The Asian financial crisis was a period of financial crisis that gripped much of East Asia and Southeast Asia beginning in July 1997 and raised fears of a worldwide economic meltdown due to financial contagion.

How did Malaysia Overcome financial crisis 1998?

Closing down the overseas trade of the ringgit, and the trade in Singapore of Malaysian shares. This put an end to speculative activities in the currency and in local shares. Regulating capital flows, particularly short-term capital outflows by foreigners and local citizens.

How did Singapore Overcome financial crisis 1997?

As Singapore slipped into recession in the second half of 1998, the government announced another package worth S$10.5 billion in November, aimed at further reducing costs for businesses by 15 percent. A major component was a 10-percent cut in employers’ Central Provident Fund contribution rate.

How was Singapore affected by the financial crisis?

In East Asia, Singapore was the first country to fall into a recession from the current global economic crisis in July 2008. Domestic policy issues in Singapore include: the labour productivity growth has declined from -0.9 percent in 2007 to -6.5 percent for the first three quarters of 2008.

How does the financial crisis affect the economy?

In general, the crisis affected the economy in the region through reduced capital flows, namely a decline in investments, a decline in domestic production and exports, and a decline in remittances (World Bank 2009b).

Why was Singapore affected by global financial crisis?

Singapore officially slid into recession today after falling consumer demand from the US and Europe hammered its manufacturing exports. The south-east Asian country’s economy contracted by 6.3% in the third quarter, on an annualised seasonally adjusted basis, having shrunk by 5.7% in the second quarter of 2008.