And fewer imports today could translate into even fewer outbound shipments tomorrow for many export-processing industries. The currency devaluations have not had as strong an effect as many people had expected. A particular concern is weakness in demand for electronics, which has powered growth in Singapore, Taiwan, Malaysia and lately the Philippines. No amount of devaluation can make U.S. or European customers buy significantly more television sets and personal computers than they need or want. And because even Japan is in the doldrums, everyone is targeting the West, which can only absorb so many clothes, shoes, toys and timber.
Receipts are so far disappointing.
Travel agents have written off regional visitors, and Westerners are being put off by reports of spreading smog from burning forests in Indonesia. Interest rates are high. That's bad for business. Companies have to pay more interest on their debts. Consumers hesitate to make any big-ticket purchases, further squeezing property developers, car makers, appliance dealers and almost everyone else.