14 May 2010 04:12 [Source: ICIS news]
MUMBAI (ICIS news)--The Greek debt crisis may usher in a prolonged recession for some of
Petrochemical players were anxious on developments in the eurozone given the region’s importance as Asia’s major trading partner after the
PTT Chemical sees some possible weakening of demand from Europe, said Narong Bunditkamol, executive vice president for olefins – shared facilities at
“There will be a little impact, but not so much,” he said on the sidelines of the Asia Petrochemical Industry Conference (APIC) 2010.
The 27-member EU was dealing with a debt problem that could morph into a major crisis if not contained, analysts said.
“All the recent bad news on
“Traders are very cautious and will wait for a clearer picture before they return to the market,” he added.
Like another massive wave falling upon a battered structure, a new crisis in
“From an export perspective, the smaller, highly open countries like Hong Kong, Singapore, Malaysia and the Philippines remain the most exposed,” said DBS Group in a note on Thursday.
Countries that rely more on their domestic economies like
The EU’s decisive move to stave off the contagion of
“There is risk of the financial turmoil getting out of hand,” said David Cohen, chief economist at research firm Action Economics.
The huge bailout in the form of a €750bn ($938bn) safety net by European Union and the International Monetary Fund over the weekend, was reminiscent of the US’ bank rescue package in late 2008 after the collapse of investment bank Lehman Brothers – widely contested but deemed necessary to calm the markets down, analysts said.
Investors were pacified for now that measures were being undertaken to prevent the crisis from spreading to other countries like
Austerity measures would have to be strictly adhered to, boding strains to economic recovery, analysts said.
The attendant fiscal tightening to access the EU funds “increases the risk of recession in many euro zone nations”, said David Kowalczyk in a recent note.
“The world is more interdependent than ever before. A recession in
The recent European turmoil had raised the downside risks on DBS’ forecast for a 1.1% global GDP expansion this year and a 1.5% growth in 2011, even as these projections had factored in weakness in EU, it added.
($1 = €0.80)
With additional reporting by Helen Yan
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