Asian financial crisis

The Asian financial crisis was a financial crisis that started in July 1997 in Thailand, and affected currencies, stock markets, and other asset prices of several Asian countries, many part of the East Asian Tigers. It is also commonly referred to as the Asian currency crisis or locally, although inaccurately, as the IMF crisis.

The United States and Japan

The "Asian flu" also put pressure on the United States and Japan. Their economies did not collapse, but they were severely hit.

Related Topics:
United States - Japan

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On 27 October 1997, the Dow Jones industrial plunged 554-points, or 7.2 percent, amid ongoing worries about the Asian economies. New York Stock Exchange briefly suspended trading. The crisis led to a drop in consumer and spending confidence (see October 27, 1997 mini-crash).

Related Topics:
27 October - 1997 - Dow Jones - New York Stock Exchange - Consumer - Confidence - October 27, 1997 mini-crash

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Japan was affected because its economy is prominent in the region. Asian countries usually run a trade deficit with Japan because the latter's economy was more than twice the size of the rest of Asia together, and seven times China's. About 40 percent of Japan's exports go to Asia. GDP real growth rate slowed dramatically in 1997, from 5 percent to 1,6 percent and even sank into recession in 1998. The Asian financial crisis also led to more bankruptcies in Japan.

Related Topics:
Japan - Trade deficit - More bankruptcies in Japan

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