Summary of New York Times-article
In the following text I will summarize the article “Crisis in Europe and U.S. Hurts Asian Economies”, published in New York Times on January 23, 2009.
The text is about the weak Asian economies and how they are affected by the crisis which is taking place in Europe and the U.S..
Because of falling European and American demand, Asian exports are sharply going back. Since the beginning of the recession in the United States and in Europe, big Japanese companies like Sony and Toyota have been exporting 35 percent less than a year earlier.
Also Chinas economy slowed sharply (in the fourth quarter down to 6.8 percent, and from 9 percent for all 2008, from once 13 percent in 2007). Furthermore, South Korea is dealing with serious economical issues as well. Its economy shrank by 3.4 percent compared to the previous year.
These effects – especially for South Korea and Japan – are much worse than those forcasted by economists. This example shows how hard it has become to fight global problems.
Moreover the text says that the Sony Corporation probably has to post a net loss of $1.7 billion, for the ending year. This would be the first such loss within 14 years for Sony.