The stability of financial markets in emerging economies in general was eroded, but Asian stock and foreign exchange markets remained relatively immune (Chart 2). Returning to the share in global GDP, the Asian economy today has recovered its share to over 30 percent, and is expected to continue contributing to the sustainable growth of the global economy.
Mechanism of economic growth in Asia What then makes the Asian economy so strong and resilient? To this end, I want to elaborate on two mechanisms or the dual engines which have driven the Asian economy. The first mechanism is Asia’s position as “the factory of the world,” a position achieved through continued expansion of exports driven by direct investment from abroad.