How do you lose US$9.8 billion in one quarter? The US largest bank, Citi Group got hit severely by the sub-prime mortgage crisis on the back of a US$18 billion write-down. Enter the sovereign funds of Singapore, China and the Gulf States to the rescue. Which means the US is really in a recession.
Asia may likely ride out this one, or at least the strong consumption trends in China and India may mitigate the fall-out resulting from the downturn in the US. Economies closely linked with US trade, such as Japan will be directly hit.
Does this mean that BPO expansion in the country will be curbed as well? Hopefully not. In fact, outsourcing to low-cost countries like the Philippines may in fact, increase.
Real estate sales are starting to be affected as well as reportedly Fil-Ams are canceling condo purchases.
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