Targeted countries:

Indonesia, South Korea, and Thailand were the countries most

affected by the crisis. Hong Kong, Laos, Malaysia and
the Philippines were also hurt by the
slump. Brunei, China, Singapore, Taiwan, and Vietnam were
less affected, although all suffered from a loss of demand and
confidence throughout the region. Japan was also affected,
though less significantly.

Thailand

 Thailand's economy grew at an average of over 9% per year.

 Highest economic growth rate of any country at the time.
 The baht was pegged at 25 to the U.S. dollar.
 Real Estate sector was booming.
 High interest rate attracted foreign investment from US and west.

Reason for failure:

 Thailand lacked the foreign reserves to support the USD–Baht currency
 The baht devalued swiftly and lost more than half of its value.
 The Thai stock market dropped 75%.
 As a result, it’s economy reached -10.51% of growth.

Indonesia
 In June 1997, Indonesia seemed far from crises because
 Low inflation
 Trade surplus
 Huge foreign reserves of $23 Billon
 Good banking system

During the crises

 Indonesia also reaches -13.3% of growth
 Foreign corporate loans became costlier
 Due to this Jakarta stock exchange touched historic low and Indonesia lost 13.5% of its
GDP.
 Before crises 1US$ cost 2600 rupiah but after it reached 11,000 rupiah for 1US$.
Philippines
 Philippine Stock Exchange, to fall to 1,000 points from a high of 3,000 points in 1997.
 Raised interest rates by 3.75%
 Overnight rates jumped from 15% to 32%.
 Huge outflow of money.

Malaysia
 Attacked by speculators.
 Overnight rates jumped from 8% to 4%
 Stock market fell by 50% from 1200 to 600
 All sectors were hurt, construction sector contracted 23.5%, manufacturing shrunk 9% and
the agriculture sector 5.9%.
 3.80 peg against dollar
 First ever recession

South Korea
 The Seoul Stock exchange fell by 4% on 7Nov, 1997.
 Next day, by 7% it’s the biggest one-day drop to that day. Further fells by 7.2%.
 In 1998, Hyundai Motors took over Kia Motors.
 Deawoo motors was sold to the American Company General Motors.