Discuss_The_Impact_Of_The_Asian_Financial_Crisis_Of_1997_On

Discuss The Impact Of The Asian Financial Crisis Of 1997 On An Asian Country Introduction Thesis: The Financial crisis that hit Hong Kong in July 1997 had significant economic impacts. Hong Kong has suffered severe problems, for example, impact on retail and banking sectors, negative economic growth, housing market, etc. Body 1. The impact on housing market 1a. High interest rates contribute to the recession Hong Kong is suffering, by raising the cost of expanding a business or buying an apartment with borrowed money. (Varona, 1998) 1b. The house prices have declined significantly since the outbreak of the Asian Financial Crisis. (Yse and Webb, 2004) 2. The disadvantage of currency board system 2a. The stable Hong Kong dollar value has further hurt economy. (Leung, 2004) 2b. Following two years of painful economic adjustment, Hong Kong is still struggling with deflation due to the depressed housing sector. (HSBC, 2000) 3. Impact on retail sector 3a. At least 10 companies have collapsed from June 1997 to May 1998. (Varona, 1998) 4. Impact on unemployment and income 4a. The unemployment rate for October inched up to nearly 3 percent and was expected to climb. (Yi, 1997) 4b. The income down around 7% since the outbreak of Financial Crisis. (Son, hong, kong, economy, economic, 1998, sector, financial, crisis, 2004, recovery, market, housing, asian, worst, varona, various, unemployment, since, retail, recession, rates, people, outbreak, interest, income, impact, growth, example, conclusion, carse, business, borrowed, banking, 2003, 1997, yse