Putting Asia’s Savings to Work in Asia
For more than three decades, Asia has been exporting its savings, through a trade surplus with the US, and re-importing them, in the form of foreign-direct and portfolio investment via New York and London. That process makes little sense, especially at a time when higher returns on investment are available within Asia itself.
HONG KONG – For more than three decades, Asia has experienced faster economic growth than any other region. As it has developed, Asia has been exporting its savings, through a trade surplus with the United States, and re-importing them, in the form of direct and portfolio investment via New York and London – a process that has created severe, though largely overlooked, financial tensions.