Unfortunately, the early signs of rapid recoveries in the Asian economies may tempt policymakers there to curtail their reform efforts in the mistaken belief that with their economies on the mend the need to pursue restructuring has somehow lessened. Finally, the strength of the U.S. economy has contributed to Asia's recovery. As the Asian countries used exports to earn money for their wounded economies, the United States has been a major customer. This increase in imports of Asian goods into the United States has led to a widening trade deficit here, but recovering Asian economies are now beginning to import more U.S. goods as well. The worst of the economic and financial crisis in Asia seems to be over.
All Asian economies appear to be recovering, some more rapidly than others.
Latin America making progress In Latin America, while international and global factors are important in driving the economic outlook, domestic political and economic issues are having increasing influence. When the Asian economic problems started in the summer of 1997, the potential impact on Latin America was uncertain. Some analysts even predicted that the crisis could benefit Latin America in that investment and capital would stop flowing to Asia and be redirected to Latin America. These predictions did not come to pass. In fact, Asia's troubles had serious negative repercussions for Latin America and for much of the rest of the world.