Worldwide, policymakers and markets have anticipated that the US sluggish recovery could face further downside risks as US fiscal and monetary policies could run out of “bullets” to provide the much needed stimulus. For the Eurozone, doubts on the potential contagion of sovereign debt crisis to other European countries remain, reflecting the ineffective impact of domestic policy on the economic recovery in these economies. Looking ahead, a more positive sentiment on the Eurozone is contingent on the growth performance of Germany and France in particular. But, recent signs of economic weakness in external and domestic demand in these countries have been somewhat worrisome, and new data release could either calm or jerk market sentiments. Despite these rather gloomy prospects in advanced economies, I remain cautiously optimistic on the performance of Asian economies for the rest of this year. My assessment is conditional on the ability of Asian economies to maintain economic resilience and pursue an appropriate policy mix to preserve economic and financial stability. Evidenced since the 2009 US crisis, major economies in Asia have been able to cushion the adverse impact of global economic roller coaster by expanding domestic demand, supported by expansionary fiscal policy and monetary accommodation. Once world trade has resumed growth after the initial contraction in the aftermath of 2008 US crisis, Asian exports have continued to grow robustly on the back of regional trade expansion and strong growth in Asia, particularly China and India.
Without further delay, may I officially open the Fitch Ratings (Thailand)’s 2011 10th Anniversary Annual Conference and wish everyone a fruitful deliberation. Thank you for your attention. BIS central bankers’ speeches  3