The U.S. may have greater impact on Asia than Europe

Note: This section contains information in English only.
Source: Marketwatch

According to Moody's, if the financial anxiety reaches the U.S., the entailed repercussions could be significantly more severe for Asia, which currently has to cope with the negative influence of crisis in Europe. Repercussions of the turmoil in Europe could result in Asian production declining by 5% within a one year period. In contrast, if the U.S. is pulled into the financial distress, the strength of the impact is likely to be of significantly larger extent and volume of Asian manufacturing may drop by 8.5% by the end of March 2013. Moody's highlighted that Europe is critical to Asia in terms of the financial trade; whereas, the U.S. is more engaged in the export demand. Hence, based on the data, it appears that the latter is of a greater importance to Asian producers rather than financial commerce.

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