The world never been so closely linked as it seems today. The credit crunch in one nation has taken the toll over the economy of the whole world. The economy of each and every nation, whether big or small is facing the turmoil. Asia and Europe being most closely linked with US have faced the direct heat.
The Asian countries are a big market for US outsourcing, the technological products being manufactured in Asian companies find their way largely into the US market, financial needs of Asians have been more or less satisfied by the banks of US. In such circumstances its obvious that Asia also has to bear the brunt. The volatility of market and uncertainty which gripped the world around is surely going to have long lasting consequences
Whether its India, China, Singapore or any other Asian country, financial market of each and every economy has registered recession due to the US meltdown.
Taiwan the hub of of notebook producing companies and home to the world's largest manufacturer of made-to-order chips is amongst the worst hit economies. Number of its companies are forced to cut down their production due to cancellation of outsourcing orders from across the Pacific.
In China the low-end contract manufacturers are scrambling for their survival. As Bruce Tolentino, a San Francisco based economist puts it - " The woes of the financial market will spill over to the rest of the economy over the next year." Closer home, India is one such country which receives the largest outsourcing projects from US. The wounded financial institution has gone on a spree to cut down on orders which in turn has resulted in shrinking of job market in India.
Large number of engineers are facing layoffs in this turbulent times. The Prime Minister of India has assured the people that utmost will be done to insulate the Indian economy from the effects of US crisis. But the effects can be minimized not totally put off in this closely knitted world.
According to the financial think-tanks of the world – things could have been worse. In their opinion although the Asian economy has reacted to the rejection of US bailout plan but things are still under control.
Hong Kong's Seng and Japan's Nikkei indexes fell by over 5% but it seems to be a milder reaction to the crisis mammoth. It is the sign that somewhere down the line people are still hopeful that the economy will once again resurrect.
