The World Bank East Asia and Pacific Economic Update is the World Bank's comprehensive, twice-yearly review of the region's economies prepared by the East Asia and Pacific regional unit of the World Bank.
(World Bank, Washington, DC, 2002-11-01)
Growth in East Asia, including that of
the crisis-affected countries has strengthened
progressively-despite the magnitude of the shocks
experienced during the financial crisis and their effects on
the balance sheets of financial institutions and corporates.
Progress on financial and corporate restructuring has
contributed to the consolidation of growth. Indeed.
Countries that have made the most progress on corporate and
financial sector restructuring, notably Korea and
Malaysia-have experienced the strongest growth performance
since the crisis. However, growth has not been sufficient to
redress the problems in the balance sheets of financial and
corporate sectors. Although progress has been made in
reducing vulnerabilities, especially in the banking sector,
progress on corporate restructuring has been slower and more
uneven across countries. In most countries, debt-to-equity
ratios remain high relative to international norms and
continue to pose a threat in the event of a major shock. A
sustained effort is needed to complete the corporate and
financial sector restructuring agenda, especially since the
cases that remain are the more difficult ones. Such efforts
are important not only to further potential vulnerability in
the kind of uncertain global economic environment we are
witnessing, but also to position East Asia for
productivity-led growth that must be the basis for sustained
improvements in income over the longer-term.