People might have new hopes about the economy’s improvement but the Economic Policy Institute thinks otherwise.

From the report of Larry Mishel, the president of EPI, this instability in the economy may continue for several more years to come. There will be more and more people who will be unemployed and will cause so much hurt in the financial constancy of the market.

But thanks to the 2009 stimulus package, the unemployment rate will be lower than 10 percent. Without the stimulus funds, it is possible that the rate will reach more than 10 percent or even bigger.

If this happens, many families would not be able to survive the recession. A relief for the current worldwide financial crisis must be found or else more and more people will suffer.

By the time that world experienced the first hit of economic crunch, many analysts and economists thought that it would be the country of China that will feel the toughest hit of the recession in Asia. This is because China gets most of its revenue and depend a big part of their income from exporting products going to the western countries.

But it was not China that is now considered as the Asian country that had the biggest blow from the global economic crisis. Surprisingly, it is Japan – the country in Asia that is considered as the number 1 ally of United States in the said continent.

The GDP of Japan decreased by as much as 16 percent. How did this happen? More than half of the country’s economy relies on manufacturing electronic devices, cars, and alike to other countries including U.S. And because there is a decline in the number of consumers purchasing their products, the production also slowed down as well.

Today, the infamous car manufacturing company already temporarily closed its plants in Japan for 41 days so that they can slash expenses and inventory. Aside from that, Sony is also laying off more than 10,000 employees in the country at the same time.

Recent reports coming from the NESDB or National Economic and Social Development Board in Thailand reveal that the GDO of the country fell down by as much as 7.1 percent during the Q1 of 2009. The CSI or consumer spending index decreased for the first time. The last year that Thailand experienced such dilemma is way back 1997 when almost all of the countries in Asia had a financial turmoil.

During the Q4 of 2008, Thailand is already having a decrease in GDP as it declines more than 4 percent than the preceding quarter. They were only expecting a drop of 2 to 3 percent for the whole year of 2009. But what worries the government even more is that the decrease in the CSI which is 2.6 percent in the Q1 alone.

Will there be a hope for Thailand?

The economic data of the country of China is clearly showing that there is a decline in the consumption of energy. The authorities stand by the fact that the country is having an economy change rather than economy contraction.

For several years now, the electric consumption in China is being used as the point of reference when it comes to the industrial activities in the country. However, if analysts would still use this as the benchmark, there is a possibility that they can be misguided. The economy of China is currently shifting into rendering services instead of manufacturing which requires intensive use of energy. This is according to the comments made by the National Bureau of Statistics.

While everyone in United States, UK, and other parts of the world are keeping their money safe inside their banks or at home, some people are willing to spend tons of dollars (or whatever their currency is) which would help in the improvement of the global economic crisis.

In Asian countries, particularly China, economists and analysts said that they will be spending a lot more of what they are keeping. Today, it is actually higher than their typical everyday expenditures. However, the savings rate today at the booming market is still expected to slide down by as much as 5 percent. Nevertheless, the consumers in Asia will add more than $900 billion to the global economy every year.

China surplus is one of the leading factors why Asian countries are willing to shell out some of their savings which would help in improving the current financial turmoil.

Last Tuesday, the Chinese stocks in the light trade increased by as much as 1.49 percent. This includes the shares in the steel coal as well as real estate properties. However, there are still doubts whether if this improvement would continue and help the economy of China on its way to recovery.

The shares of the Shanghai A beat the others ending with 792 shares compared to the 124 of the competitors. However, investors were still confused and trying to be very cautious since they got mixed signals as well as diverse economic data for the month of April.

According to the analyst of Zheshang Securities, Zhang Yanbing, the increase in the China stocks is because of various factors. They were very happy to see that there is an improvement in the real estate sector last month. There is a 0.2 percent increase last March in the said industry and the development raised to 0.4 percent last April.

The dealers in Taiwan recently said that the share prices in the country may become very unstable in the next weeks. According to the dealers , the recent gains have increased the valuations of the market. This resulted to a greater downside risk. Moreover, the stock market will be weaker at the same time.

After the outperformance at the bigger market, the financial sector of Taiwan may experience a heavier pressure. They are now hoping that China as well as Taiwan will have an agreement particularly on the banking exchanges. But because of the of the continuous flow of funds from foreign countries, they might get as much as 6,000 points later on.

In Malaysia, it is likely that the shares would extend the current rally according to the analysts. The rally is pumped up by the hopes that the economy will recover and the government will do something about it ASAP. The TA securities recently commented that as the momentum of the share buying starts to boom towards a higher record there are more and more players in the shares market that would possibly jump in and trigger more rallies in the following sessions.

But the TA Securities also said that it is also possible that there will be conservative investors who will be interested in taking profits.

Recently, the oil prices in most countries located in Asia had an increase of oil prices. The dealers said that there is a great demand for energy. They were also hoping that this could be one of the signs that economic growth is on its way.

The crude products that are up for delivery in New York for the month of June increased by as much as 38 cents, leaving the price to $57.09 for every barrel. On the other hand, the petroleum products that would be for delivery in the Brent North Sea increased up to 69 cents, leaving a price of $57.16.

There were at least 13 countries located in Southeast and East Asia that agreed to have an emergency fund worth $120 so that it would serve as the funds for liquidity to any of these countries who need assistance during the global economic crunch.

The countries included in this agreement are the following:

1. Japan

2. Philippines

3. Pacific Islands

4. Timor

5. Leste

6. Indonesia

7. Malaysia

8. Vietnam

9. Laos

10. Thailand

11. Sri Lanka

12. Cambodia

13. Maldives

The Land of the Rising Sun contributed as much as $62 billion or 6 trillion yen as part of the support funds. One analyst in Indonesia said that it is a great start in building optimism in the Asian Market.

On the other hand, Kirby Daley, the senior strategist of the Hong Kong-based company – Newedge Group said that this is no longer a surprising news. However, the confirmation of this news may give the optimists a new reason to go on with the current rally.