Addressing the Impact of the Global Financial Crisis on Asia-Pacific Economiess

In the current global financial crisis, 15 September 2008 marked a decisive turning point. It was the day that the American investment bank Lehman Brothers Holdings, Inc. collapsed, exacerbating the financial turmoil and causing an extraordinary downward spiral in confidence. It was also the day on which the crisis truly hit Asia- Pacific shores, spreading beyond its equity markets and posing the greatest threat to development since the financial collapse of 1997. The impact on the region was seen most immediately in the financial sector, while the medium-term impact on growth will become evident in the coming months. Countries will be able to avoid the worst of the consequences by bolstering national policy actions with key concerted regional cooperation initiatives.