Abstract

Over the three years since the crisis broke out in 1997, the five Asian countries—Indonesia, Korea, Thailand, Malaysia, and Philippines—managed impressive recoveries. The recoveries were faster than expected by anyone. The economies started to bottom out in the second half of 1998. The rebound of growth in 1999 was no less drastic than its free-fall. In Korea, for example, the growth rates showed a turnaround from −6.7 percent in 1998 to 10.7 percent in 1999.