Executive Summary :
Global shocks challenged the stability of Asia-Pacific economies in 2008 and will most likely remain a source of strain in 2009. Authorities in many countries took a range of actions to secure financial stability and limit downside risks to the near-term economic outlook. Attention was also given to reforms that might make financial systems more resilient to shocks and less prone to financial excesses. The current crisis in the major financial markets is the latest in a long series to demonstrate that weaknesses in financial systems can have serious economic consequences. Countries are becoming ever more interconnected. Problems in one apparently isolated sector, within any one country, can result in problems in other sectors and spillover across borders. Read more