They, too, concluded that mismatches accounted for only a small amount of the increase in the unemployment rate during the recession – on the order of 3/4 to 1–1/2 percentage points.11 In sum, I do not think arguments suggesting that structural factors account for most of the increase in unemployment are persuasive, either individually or collectively.
Large stocks of foreign exchange reserves have accumulated, balance sheets of both the corporate and banking sectors have improved, and structural reforms in various areas have proceeded, all of which have contributed to making East Asia more resilient to external shocks. It is highly likely that East Asia will continue to play a major part in the sustained growth of the world economy.