The debt crisis affected the bigger part of the world. The financial collapse began because of the irresponsibility of the American financial institutions but it overspread all around the globe quickly. The EU countries experienced serious sovereign debt problems. The latest reports show that Asia could be affected by the crisis as well.
The Asian Development Bank warns that it is possible for Asian countries to be seriously influenced by the Eurozone debt crisis. The Asian region is the most fast-growing one globally. According to ADB, the Chinese economy will growth at 7 % this year and 7,5 % the next one. These fast-growth rates are praised but China still has its social problems. Regardless, Chinese unemployment rate is one of the lowest worldwide- just 4,5 %. However, social inequality is high. The gap between the poor and the rich should be reduced, because it is possible that the Chinese population expresses its social discontent and riots.
However, weaker European demand could hit Asian developing countries such as China, India and Indonesia. The Asian Development Bank has concerns about this complicated situation. The Eurozone sovereign debt crisis presents the greatest risk to Asian economies in the next year. This statement is based on research about European unemployment and decreased consumption. Most affected European countries have passed through the mortgage and financial crisis, the social crisis and the political crisis. It is completely normal that European demand to be restricted. Furthermore, there is uncertainty surrounding the resolution of sovereign debt problems in Europe. This instability conceals risks for Asian producers as well. They should adjust to the present situation. Also, both parts should look for solutions for their problems. The Eurozone should be tough and serious with countries which financial problems that went out of control. Greece and Spain have the most problematic economies and the European Union should make extra effort to stabilize them. On the other side, Asian countries should be flexible in terms of its external consumers.
The present situation worldwide shows that there is no guarantee for anybody. Before the financial debt crisis of 2008 Europe and the U.S. were in their heyday. Today there are new world powers such as China, India and Brazil. These countries managed to convert their economies to super productive ones. They managed to use their human resources in a extremely smart way. So, what will happen in the future and what will be the relations between the superpowers, it can be just predicted, but not completely sure.